BNP Paribas Securities Services, a subsidiary of BNP Paribas banking group, has entered into a strategic partnership with crowdfunding platform Smart Angels. The primary objective is to run a pilot project that will allow private companies to issue securities on the primary market and give investors access to the secondary market using blockchain technology, Finextra reported. 

According to La Revue Du Digital, the launch of the project is set for latter half of 2016 and is subject to regulatory approvals.

Under the partnership, BNP Paribas Securities Services is developing a register using the blockchain protocol that will automatically register financial securities issued by companies listed on SmartAngels. 

The platform will be operated by BNP Paribas and will facilitate simplified, secure and low cost financial transaction. In addition, investor payments will be processed immediately and their e-certificates will be issued instantly. 

“By applying the blockchain technology crowdfunding industry, we will accelerate and secure cash flow exchanges and securities through e-certificates”, said Philippe Ruault, Head of product for clearing, custody and settlement of BNP Paribas Securities Services (according to Google-translated version).

The standardisation of transactions coupled with the improved security provided by the implementation will enable investors to trade their shares directly on the SmartAngels platform, thereby creating a liquid secondary market for registered companies, Benoit Bazzocchi, founder of SmartAngels, said. 

“At the moment, only a few thousand companies are listed on the financial markets in Europe," Finextra quoted Bazzocchi. "The integration of Blockchain on crowdfunding platforms will give hundreds of thousands of start-ups and growth SMEs fast access to low-cost financing from individual and professional investors.”

BNP Paribas has been increasingly taking interest in blockchain technology. It has joined the R3 blockchain consortium and European (CDC) initiative, and has recently announced its acquisition of a stake in blockchain startup Digital Asset Holdings. In February, it announced the successful completion of Blockchain Bizhackathon and also selected blockchain-based startups for its Fintech Accelerator programme.