BNP Paribas Securities Services and crowdfunding outfit SmartAngels have loaded the share registers of five of their clients onto a new platform designed to allow private companies to issue securities on the primary market and give investors access to the secondary market using blockchain technology.
The two announced plans to develop the service last year and say they have now designed a number of critical functions that will enable private companies to manage the lifecycle of their financial securities, from issuance to the sale and purchase of securities.
The programme has been created to automatically register securities issued by SmartAngels’ client companies, processing investor payments and issuing e-certificates to investors via a distributed ledger. The intention is to create a service capable of meeting the needs of a wide client base, including issuers, shareholders, investors (business angels, venture and growth capital investors) and crowdfunding platforms, as well as lawyers, notaries, accountants, and banks.
The live tests included the register of BNP Paribas Securities client SigFox, a leading internet of things connectivity service, as well as four startup clients, which recently raised funds on the SmartAngels platform.
Nelson Fernandes, Blockchain, senior business lead at BNP Paribas Securities Services, says: “We are delighted to be working with SmartAngels on this project and to welcome Sigfox onto the platform during the test phase. We have identified where the processes relating to issuing, buying and selling unlisted stocks needs to be optimised. Our platform aims to deliver a digital solution that meets the needs of all market participants and professionals in these markets.”
With testing complete, he says the next phase will entail the "industrialisation" of the platform before commercialising it. SmartAngels will also take to market a range of share register digitisation and portfolio monitoring services.