A subsidiary of BNP Paribas Group has announced a partnership that will find it leveraging blockchain technology to enable private companies to issue securities.
In statements, BNP lauded the effort as a "major step" in advancing crowdfunding. The project will see BNP Paribas developing and managing a registry for shares in private companies using the blockchain that in turn will automatically register securities issued by SmartAngels.
Smart Angels will serve as a secondary market for shares registered on the BNP platform, a move the partners said would make it easier for startups and small businesses to access financing.
The release reads:
Philippe Ruault, head of product for clearing at BNP, emphasized his belief the program would accelerate trading in the private securities market.
"This is a major innovation for the custody and account-keeping of unlisted securities," he said.
The project is not the first that finds a major financial firm seeking to leverage the blockchain as a way to ease aspects of the private securities process. The effort notably follows Nasdaq Linq, a pilot designed to allow entrepreneurs the ability to issue and manage private shares using a private blockchain system.
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