A group of major European financial institutions has jointly formed a post-trade blockchain startup designed specifically for small- and medium-sized enterprises (SMEs).
According to an announcement, the banks involved created a partnership back in June 2016 to develop a post-trade infrastructure based on distributed ledger technology. That agreement has now resulted in the launch of the new startup, dubbed LiquidShare, which is aimed to give SMEs more access to capital markets and reduce post-trade transaction costs while bringing added security and transparency.
The shareholders who will provide financial support for the endeavor include European investment banks BNP Paribas, Caisse des Dépôts, Euroclear, Société Générale, S2IEM and CACEIS, as well as the pan-European stock exchange Euronext.
A cast of familiar names, most participants have already demonstrated an ongoing interest and involvement in blockchain development.
BNP Paribas Securities Services, a subsidiary of BNP Paribas, for example, is reported to have developed a fund-distribution platform using blockchain technology with investment manager AXA. Also, earlier this year, Euroclear announced the expansion of its blockchain-based gold trading platform, which could see a full launch later this year.
The former head of global transaction banking at Deutsch Bank in France, Thibaud de Maintenant, has been named as the head of LiquidShare. Joining him as the chairman of the supervisory board will be Anthony Attia, a managing board member of Euronext.
Europe on a globe image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.