French Bank BNP is Testing Blockchain for Mini-Bonds

BNP Paribas has announced its latest blockchain project will focus on 'mini-bonds' for small investors.

Sep 19, 2016 at 3:37 a.m. UTC
Updated Sep 11, 2021 at 12:30 p.m. UTC

BNP Paribas has revealed its securities services division is working on a blockchain platform that would enable retail investors to lend money to businesses via an instrument known as a mini-bond.

According to Financial News, BNP Paribas Securities Services is building a distributed ledger platform that will maintain and record mini-bonds issued through the platform. For the effort, BNP is partnering with French crowdfunding startups Enerflip, Lendosphere and Lumo.

The announcement is the latest that finds the French multinational bank exploring how it could use blockchain to better serve small businesses, following a blockchain-based crowdfunding platform announced in April and an SME lending effort it announced in June along with six other French financial institutions.

In statements to the news source, BNP Paribas Securities Services' Innovation & Digital Lab head of business management Marc Younes said the platform is one that stands to benefit small businesses, while potentially helping standardize mini bond management.

Younes said:

"Blockchain technology is particularly suited to the fundraising needs of private companies as transactions volumes are typically lower than for listed companies."

As part of this drive, BNP Paribas revealed earlier this month that it is seeking to engage more of its employees in its blockchain efforts.

For more on its recently unveiled New York innovation lab, CoinDesk's latest feature on BNP Paribas.

Image credit: Elenarts / Shutterstock.com


Read more about
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: Funds Lost Billions in the Terra Collapse. Here are the Ongoing Effects; Bitcoin Sees Red

When a fund suffers a major dent to its token, the impact reverberates widely throughout the venture funding eco-system; most major cryptos fell despite gains in U.S. equity markets.

When a fund suffers a major dent to its token, the impact reverberates widely throughout the venture funding eco-system; most major cryptos fell despite gains in U.S. equity markets.

CoinDesk - Unknown
2
CoinDesk - Unknown
At Davos, Crypto Is No Longer on the Outside

Cryptocurrencies have taken a prominent role at the World Economic Forum's annual meeting in Davos, despite the mainstream finance world's apparent contempt for the sector.

Cryptocurrencies have taken a prominent role at the World Economic Forum's annual meeting in Davos, despite the mainstream finance world's apparent contempt for the sector.

CoinDesk - Unknown
3
CoinDesk - Unknown
Wall Street Says a Fed Digital Dollar Spells Destruction for Banks

The Federal Reserve is considering whether to launch a CBDC like other nations, and bankers argue that’s a dangerous idea.

The Federal Reserve is considering whether to launch a CBDC like other nations, and bankers argue that’s a dangerous idea.

CoinDesk - Unknown
4
CoinDesk - Unknown
What Davos Man Thinks of Bitcoin and Crypto This Year

The annual WEF conference has begun, albeit late and in a more subdued fashion.

The annual WEF conference has begun, albeit late and in a more subdued fashion.

CoinDesk - Unknown