7 Financial Firms to Build Post-Trade Blockchain for Small Businesses

Seven financial institutions have partnered to explore how blockchain tech could benefit small enterprises.

Jun 21, 2016 at 11:41 p.m. UTC
Updated Sep 11, 2021 at 12:20 p.m. UTC

Seven financial institutions have combined forces to explore how blockchain tech could help lower the costs of providing post-trade settlement services to small- to medium-sized enterprises (SMEs).

BNP Paribas Securities Services, Caisse des Dépôts, Euroclear, Euronext, S2iEM, Société Générale and Paris EUROPLACE announced today they have signed a memorandum of understanding to develop the initiative. By lowering the costs of post-trade services, the group says SMEs could better access to financing through the capital markets.

The partnership will also consider launching an independent company to design, develop and deploy blockchain technology to other international post-trade partners.

In recent months, financial institutions from all over the world have been partnering and joining consortiums to develop blockchain infrastructure for various areas of the banking system. However, activity has also been strong in France, where 11 financial services firms announced a similar partnership in December to evaluate the ethical and regulatory implications of the technology.

The latest move aligns with the thinking that for permissioned blockchains to succeed, institutions that have traditionally been competitors will have to collaborate.

"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,” a joint statement issued by the group reads.

The group cited the speed of execution, low cost and security that blockchain could provide as driving factors behind the initiative.

European map image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, 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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
3
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
4
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown