BNP Paribas Securities Services has partnered with French crowdfunding platform SmartAngels, on a pilot program that will use blockchain technology to give small companies and startups the ability to issue shares and raise money from retail and accredited investors.
The pilot program will be the first of its kind in France, and is scheduled to launch in the second half of 2016, if regulatory approval is granted.
In today’s blog post announcing the partnership, Benoit Bazzocchi, Founder of SmartAngels, explained that the merging of blockchain tech and crowdfunding will open doors for many small companies to obtain capital from many “individuals and professional investors”.
The blockchain portion of the pilot program is being designed by BNP Paribas Securities Services, and companies that are currently listed on SmartAngels will be automatically given the ability to issue securities on the new platform.
Head of product clearing at BNP Paribas Securities Services, Philippe Ruault, mentioned that the entire securities issuing and purchasing process will be very quick and easy, “By applying the blockchain technology crowdfunding industry, we will accelerate and secure cash flow exchanges and securities through e-certificates,” said Ruault.
An English translation of the blog post reads:
“Investors buying these titles will have their payments processed immediately and their e-certificates will be issued instantly.”
SmartAngels will also allow investors to trade the new securities directly on its platform, which will create a liquid market for shares issued by small companies and startups.
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