An assortment of groups have coalesced to sign a memorandum of understanding (MOU) to help advance and foster the development of a post-trade blockchain infrastructure for small, medium enterprises (SMEs) in Europe.
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The list entails some household names in the banking and institutional space, which includes BNP Paribas Securities Services, Caisse des Dépôts, Euroclear, Euronext, S2iEM, and Société Générale. Presently, blockchain technology is utilized via a virtual ledger that helps aggregate data for shared distribution between multiple users. The mechanism by which the blockchain operates acts as a pioneering technology that is widely used for data transmission in multiple sectors and across the financial services industry.
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The newly inked MOU however is open to other international partners, with an inaugural agreement looking to help improve SMEs’ access to capital markets whilst facilitating both secure and transparent post-trade operations. In addition, the initiative is part of an ongoing development and strategy of a new regulatory environment throughout France that aims to enhance the circulation of securities using blockchain technology.
In particular, the partnership’s main strategy is to help combine its constituent members’ financing capacity and expertise to aggregate innovation through a newly consolidated and independent entity – this will also emphasize blockchain technology in its design, development and deployment of innovative solutions for post-trade.
According a recently released statement by the joint partners involved in the MOU: “We wanted to engage collaboratively in order to mount an innovative project with the potential to drive the transformation of the post-trade market. By pooling our strengths in this ground-breaking area, we are focusing on new solutions that will give small and mid-sized companies — key actors for growth in Europe – easier access to the financing they need.”