CACEIS, the asset servicing banking group of Crédit Agricole for the institutional market has signed an investment agreement intended to develop a postmarket blockchain infrastructure for the SME segment in Europe.
Formed in a Memorandum of Understanding in June 2016, the initiative was launched in anticipation of a new regulatory framework in France providing for the issue and distribution of financial securities using blockchain technology.
The pilot agreement as formed last year set as its objective to improve the access of SMEs to capital markets while facilitating and enhancing the security of postmarket operations.
Starting with only seven, the addition of CACEIS brings together eight major financial institutions: CACEIS, BNP Paribas Securities Services, Caisse des Dépôts et Consignations, Euroclear, Euronext, S2iEM and Société Générale, with the support of Paris Europlace.
By joining forces, the initiative’s main advantage is the combination of members’ financing capacities and expertise to promote innovation through a new, independent company whose mission will be to harness blockchain technology in the design, development, and deployment of innovative solutions for post trade.
Blockchain technology uses a ledger of data that is distributed and shared by multiple parties.
Jean-François Abadie, CEO of CACEIS, remarked:
“We are very pleased to participate in this collective innovation process. This promising project combines a wide range of experience and expertise that is appropriate to its ambition to help drive the process of transforming the postmarket environment. This is fully in line with the CACEIS strategy of prioritizing the development of innovative solutions for its clients.”
CACEIS made different blockchain based financial news back in March when they announced partnership wth Bitstamp, the EU licensed bitcoin exchange for the launch of a new service which enables fund promoters to accept bitcoin investments from both retail and corporate clients.