Pilot Testing of Blockchain-Based System by BME Stock Exchange

Deepshikha  |  May 16, 2021

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.

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