BNP Paribas Securities Services is expanding its blockchain platform for private stocks to help private companies issue minibonds via crowdfunding platforms. The bank is working in partnership with renewable energy crowdfunding specialists Lendosphere, Enerfip and Lumo on this initiative.
The move follows the French government’s initiative to allow private companies to issue minibonds via crowdfunding platforms. The government is also encouraging crowdfunding companies to consider using distributed ledger technology, rather than existing individual ledgers, to ensure the authentication of transactions.
As part of the partnership, BNP Paribas Securities Services is working on a distributed ledger that will register all minibonds issued via the platform and record all related transactions and changes of ownership. Issuers and investors will benefit from a standardised process, which will ensure financial transactions are performed quickly, efficiently and securely.
This latest partnership follows BNP Paribas Securities Services’ announcement in April that it was working on a platform designed to enable private companies to issue shares on the primary market and ultimately give investors access to the secondary market using blockchain technology.
Marc Younes, head of business management at BNP Paribas Securities Services’ Innovation & Digital Lab, said: “We are delighted to be working on this exciting new initiative, which answers the French government’s call to make use of distributed ledgers to support the sale of minibonds via crowdfunding platforms. “Blockchain technology is particularly suited to the fundraising needs of private companies as transactions volumes are typically lower than for listed companies. This technology could also serve to standardise processes around the trade lifecycle of minibonds.”
Amaury Blais, chairman at Lendosphere, said: “As a top three crowdlending player in France, we are keen to explore how new technologies can help grow our industry. We are delighted to be associated with BNP Paribas Securities Services’ innovative project and participate in setting efficient and standardised processes, which will ultimately help private companies’ fundraising efforts.”
Alex Raguet, chairman at Lumo, said: “By bringing together investors and companies looking to raise funds, crowdfunding has created a digital and innovative type of financing. Exploring how blockchain can help enhance the services we offer to our clients is a way for us to continue to innovate.”
Léo Lemordant, chairman at Enerfip, said: "At Enerfip, we are convinced of the opportunities blockchain presents for our business. A project of this scale requires collaboration between industry participants and we are delighted to be working with such a renowned actor as BNP Paribas Securities Services.”
BNP Paribas Securities Services aims to have the new platform ready by the end of this year and launch it as the final law on minibonds is passed in France.
BNP Paribas Securities Services, a wholly-owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider backed by the strength of the BNP Paribas Group. It provides multi asset post trade and asset servicing solutions for institutional participants in the investment cycle, from the buy-side and sell-side to corporates and issuers. Covering over 100 markets, offices in 34 countries, the BNP Paribas network is one of the most extensive in the industry. We bring together local insight and a global network to enable clients to maximize their market and investment opportunities worldwide.
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