Seven financial firms team up to build post-trade blockchain for SMEs

Rage Comment : In recent years, the European economic situation has declined. Not only has France's economic growth slowed down, but it is also facing great deflationary pressure. Therefore, seven financial institutions with France as the core announced to explore blockchain technology and set up a special company to design, develop and deploy blockchain technology for European small and medium-sized enterprises, reduce post-transaction settlement costs, and provide better financial market access conditions for small and medium-sized enterprises, which are the main economic driving force in Europe, so as to revitalize the European economy.

Translation: Annie_Xu

Seven financial institutions have joined forces to explore ways to use blockchain technology to reduce the cost of post-trade settlement services for small and medium-sized enterprises.

Today, BNP Paribas Securities Services, Caisse des Dép?ts, Euroclear, Euronext, S2iEM, Société Générale and Paris EUROPLACE announced the signing of a memorandum of understanding for the initiative, which the consortium said would reduce the cost of post-trade services and facilitate access to capital markets for small and medium-sized companies.

The collaboration includes the creation of an independent company to design, develop and deploy blockchain technology for international post-trade service partners.

In recent months, financial institutions around the world have been forming various partnerships and alliances to develop blockchain infrastructure for the banking system. However, France has not been left behind, and in December 11 financial services companies announced a similar cooperation to evaluate the regulatory and ethical issues of blockchain.

Recent activity in the blockchain space has been guided by the idea that traditional competitors must collaborate for permissioned blockchains to succeed.

The coalition declared:

“We are bringing together all of our strengths to explore this innovative technology, committed to providing small and medium-sized enterprises (Europe’s main economic growth drivers) with easier access to financial markets.”

The organization cited blockchain’s speed, low cost and security advantages as the main motivation for the initiative.