BNP Paribas Securities Services, a custodian subsidiary of BNP Paribas, and French direct investment platform SmartAngels, have signed a strategic partnership to use blockchain technology for crowdfunding of private companies.
The two partners will permit private companies to issue securities on the primary market and give investors access to the secondary market using blockchain technology. The pilot scheme is scheduled for launch in the second half of 2016, subject to regulatory approvals.
Under the partnership, BNP Paribas Securities Services is developing a share register that uses the blockchain protocol, which will automatically register financial securities issued by SmartAngels’ client companies.
Investor payments will be processed immediately and e-certificates will be issued to them straight away.