BNP Paribas Securities Services is expanding its blockchain platform for private stocks to help unlisted companies issue minibonds via crowdfunding platforms.
The bank is working in partnership with renewable energy crowdfunding specialists Lendosphere, Enerfip and Lumo on the project, which follows a Government-sponsored initiative to allow private companies to issue minibonds via crowdfunding platforms.
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.
The bank says it have the new platform ready by the end of this year and launch it as the final law on minibonds is passed in France.
In April BNP Paribas announced plans to run a pilot scheme conducted with crowdfunding outfit Smart Angels that will allow private companies to issue securities on the primary market and give investors access to the secondary market using blockchain technology.
Marc Younes, head of business management at BNP Paribas Securities Services’ innovation & digital lab, says: “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.”