Pilot Testing of Blockchain-Based System by BME Stock Exchange

Rate this post

The Spanish stock exchange is all set to test its scheduled blockchain-based system to finance small and medium-sized enterprises. Bolsas y Mercados Españoles or BME testing the small and medium-sized venture follows the successful run from the year 2020. 

Apart from SMEs, major banks also seem to be interested in blockchain technology to limit exposure to trade finance risks.

Spanish Stock Exchange Ready to Test Blockchain-Based SME

The next set of trials by Bolsas y Mercados Españoles will include businesses that are part of the country’s enterprise financing ecosystem. This will be under the aegis of an administrative sandbox created by Spain’s Ministry of Economic Affairs and Digital Transformation.

As per the previous reports, the sandbox is observed as an important step in encouraging greater fintech development in Spain, with a focus on improving the quality of competition while lowering entry barriers for participants.

The aforementioned experimental phase that occurs back in 2020 drew contributions from investment servicing companies and business credit providers.

As a part of the second round of tests, according to the exchange, they are:

“Likely to be looking to scrutinize the suitability of the Ethereum-based system in raising capital for the limited liability companies outside the usual traditional bank financing route.”

Spanish Stock Exchange Pilot Testing for Electronic Certificates Using Blockchain-Based System

The Bolsas y Mercados Españoles blockchain platform aims to facilitate SME financing digital assets that represent funding avenues for example – convertible notes and participatory loans.

For the SME financing project, the blockchain platform also adds a digital wallet for SMEs to store their assets. The stored assets can be both electronic money and financial investment instruments. 

The project marks a further expansion of the BME’s digitization policy in the present time. The Spanish Stock Exchange successfully completed the pilot testing of its blockchain-based system in March 2019. The testing was associated with electronic certificates of collateral pledges.

Deepshikha Gupta

A student from a technical background, Deepshikha found Bitcoin in 2020 and has been an evangelist ever since. A B.Tech turned into a full-time crypto-writer, she tries to bridge the gap that currently exists between the crypto world and people from non-technical backgrounds, through her simplistic yet effective form of writing. She finds that her writing for cryptocurrencies can redefine the way the audience interacts with the crypto space.

Recent Posts

THORChain Price Prediction 2021-2025: Is RUNE Set to Reach $5 by 2021?

The craze of removing centralization from the financial services industry led to the introduction of…

2 hours ago

Peter Schiff Tweets the Best Time to Buy Bitcoin

Peter Schiff has recently revealed the best time to buy Bitcoin and has tweets regarding…

6 hours ago

Bitcoin Dominance Surges as the Altcoin Market Bears Huge Crash

Regardless of the fact that the price of Bitcoin has plunged to a two-week low,…

6 hours ago

Indian Government to Levy 2% Equalisation on Crypto Assets

As recently revealed, the existing laws in the country could mandate a 2% levy on…

7 hours ago

Bitcoin Sees Largest Exchange Inflows Since March 2020 Crash

Another bearish signal for Bitcoin has been looming around the corner with the digital asset…

8 hours ago

Dogecoin Gets Hit the Hardest Among Top 10 Coins, Plunges Over 20%

Meme-based cryptocurrency Dogecoin gets hit the hardest among the top 10 coins and saw its second-worst…

9 hours ago