BNP Paribas Security Services has entered in a partnership with investment platform SmartAngels to pilot a blockchain technology that will enable private companies to issue securities. The project will see BNP Paribas developing and managing a registry for shares in private companies using the blockchain that in turn will automatically register securities issued by SmartAngels. SmartAngels will serve as a secondary market for shares registered on the BNP platform, a move the partners said would make it easier for start-ups and small businesses to access financing. According to the entities, the pilot would be launched in the second half of 2016, pending regulatory approval. With the initiative, the investor payments will be processed immediately and e-certificates will be issued. Financial transactions made via the platform will therefore be performed simply, quickly, securely and for a lower cost, the firms said. BNP product for clearing head Philippe Ruault said the program would accelerate trading in the private securities market. This is a major innovation for the custody and account-keeping of unlisted securities, he said.
