BNP Paribas Securities Services has completed the first phase of its partnership with FinTech firm SmartAngels with the creation of a share register management platform using blockchain.
According to BNP Paribas, the platform enables unlisted companies to digitalise their financial securities and manage their shareholder register using a distributed ledger.
As part of the initial phase, BNP Paribas and SmartAngels say they have designed a number of functions enabling companies to manage their financial securities lifecycle from issuance to the sale and purchase of securities.
Benoit Bazzocchi, president and founder of SmartAngels, said: “Adding shareholder management and portfolio monitoring services to our existing offering will help us reinforce our role as the specialist marketplace for unlisted stocks.”
Both parties revealed the share registers of five clients were loaded on to the platform during testing, including connectivity service SigFox as well as four startup clients.
“We have identified where the processes relating to issuing, buying and selling unlisted stocks need to be optimised,” said Nelson Fernandes, senior business lead for blockchain at BNP Paribas Securities Services.
“Our platform aims to deliver a digital solution that meets the needs of all market participants and professionals in these markets.”
The agreement is the latest venture for the French bank in blockchain applications following a partnership with fund manager AXA IM, announced in April, which will develop a next-generation fund distribution platform called BNP Paribas Fund Link. It will aim to increase the efficiency of the fund distribution process through the use of blockchain and smart contract technology.