French banking giant BNP Paribas' securities services division is moving forward with plans to leverage blockchain technology in the crowdfunding arena. The subsidiary has signed on renewable energy p
French banking giant BNP Paribas' securities services division is moving forward with plans to leverage blockchain technology in the crowdfunding arena. The subsidiary has signed on renewable energy platforms Lendosphere, Enerfip and Lumo to help facilitate the issuance of mini-bonds by private companies through crowdfunding channels.
The initiative involves creating a blockchain system capable of documenting mini-bond issuance, tracking transactions, and managing ownership changes. Marc Younes, who heads business management at the Innovation & Digital Lab within BNP Paribas Securities Services, expressed optimism about the venture: "We are delighted to be working on this exciting new initiative, which answers the French government's call to make use of blockchains to support the sale of mini-bonds via crowdfunding platforms."
Earlier this year, in May, French authorities introduced regulatory provisions permitting the deployment of blockchain technology for mini-bond issuance and trade recording. The new framework formally codified blockchain within French legal structures and designated it as a legitimate mechanism for title transfer and ownership authentication. Since that regulatory shift, authorities have been pushing crowdfunding operators to adopt blockchain instead of relying on separate ledger systems, both for transactional verification and to strengthen security frameworks.
The advantages for smaller enterprises are noteworthy. According to Youned, "blockchain technology is particularly suited to the fundraising needs of private companies as transactions volumes are typically lower than for listed companies." He further noted that "This technology could also serve to standardize processes around the trade lifecycle of minibonds."
The French bank intends to roll out its revamped platform before year's end. Actual deployment hinges on passage of the final mini-bonds legislation in France. This latest move builds on prior developments—specifically, an April announcement regarding a partnership with crowdfunding platform SmartAngels, another effort centered on blockchain applications for private-company securities issuance and investor access to secondary markets.
Philippe Ruault, heading the product division overseeing clearing, custody and settlement operations, explained how the technology delivers tangible benefits. Distributing blockchain across the crowdfunding space, he said, could expedite the movement of cash and securities by incorporating e-certificates, alongside enhanced safeguards. "This is a major innovation for the custody and account-keeping of unlisted securities," Ruault commented. "It provides BNP Paribas Securities Services with the opportunity to test a solution that could be applied to listed securities markets."
Ruault underscored that "the use of blockchain [was] part of BNP Paribas' digital strategy."
BNP Paribas, headquartered in Paris, functions as a multinational banking and financial services enterprise. The group ranks among the world's five largest financial institutions based on total asset holdings.
