BNP Paribas Securities Services expands its blockchain platform for private stocks
19.09.2016 | Financial Information, Press release
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.
The information contained within this document (‘information’) is believed to be reliable but BNP Paribas Securities Services does not warrant its completeness or accuracy. Opinions and estimates contained herein constitute BNP Paribas Securities Services’ judgment and are subject to change without notice. BNP Paribas Securities Services and its subsidiaries shall not be liable for any errors, omissions or opinions contained within this document. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. For the avoidance of doubt, any information contained within this document will not form an agreement between parties. Additional information is available on request.
BNP Paribas Securities Services is incorporated in France as a Partnership Limited by Shares and is authorised and supervised by the European Central Bank (ECB), the ACPR (Autorité de Contrôle Prudentiel et de Résolution ) and the AMF (Autorité des Marchés Financiers).
BNP Paribas Securities Services, London branch is authorised by the ACPR, the AMF and the Prudential Regulation Authority and is subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available from us on request. BNP Paribas Securities Services, London branch is a member of the London Stock Exchange. BNP Paribas Trust Corporation UK Limited (a wholly owned subsidiary of BNP Paribas Securities Services), incorporated in the UK is authorised and regulated by the Financial Conduct Authority.
In the U.S., BNP Paribas Securities Services is a business line of BNP Paribas which is incorporated in France with limited liability. Services provided under this business line, including the services described in this document, if offered in the U.S., are offered through BNP Paribas, New York Branch (which is duly authorized and licensed by the State of New York Department of Financial Services); if a securities product, through BNP Paribas Securities Corp. or BNP Paribas Prime Brokerage, Inc., each of which is a broker-dealer registered with the Securities and Exchange Commission and a member of SIPC and the Financial Industry Regulatory Authority; or if a futures product through BNP Paribas Securities Corp., a Futures Commission Merchant registered with the Commodities Futures Trading Commission and a member of the National Futures Association.