LiquidShare, a blockchain-based post-trade settlement infrastructure for shares in small and medium sized enterprises (SMEs), has entered into a pilot phase with 15 market participants trading over Euronext.
Founded in 2017 which aim of improving SME’s access to capital markets, Liquidshare has the financial support of a powerful group of shareholders, including AFS Group, BNP Paribas, CACEIS, Caisse des Dépôts, Euroclear, Euronext, S2IEM and Société Générale.
The pilot trial will see LiquidShare connect to asset managers’, broker-dealers’ and custodians’ information systems, enabling them to more easily invest in and process listed and non-listed European SMEs.
The system first receives orders and ensures that the necessary cash and securities are reserved in LiquidShare’s smart contract system. Orders are then transmitted to Euronext’s Optiq trading platform. After matching, Euronext sends the execution to LiquidShare for near real-time settlement.
LiquidShare is a private permissioned platform built on an Ethereum with the core business logic coded in discrete cash, security and delivery versus payment smart contracts. The usage of the blockchain allows a peer to peer settlement between custodian’s node.
Thibaud de Maintenant, CEO of LiquidShare, says: "The delivery of LiquidShare Platform is the result of the efforts of the Pilot Participants and is the first milestone to become the first industrial blockchain in production, processing hundreds of transactions per day in a regulated environment."