This new technology is defined quite simply as a distributed database. It functions as a shared storage space, optimizing the exchange between users and the analysis of information. Blockchain is also the first wave of Fintech to bring instant payment.
In the same way that we use hosting providers such as Amazon Web Services or Google Cloud, our partner has developed a SaaS to enable the digitization of the securities movement registers of unlisted companies and can also host, via the blockchain, a global transaction accounting system, in a more secure way. The transaction is effective only when the company's securities movement register is updated.
Our service provider, as a Payment Service Provider (after obtaining approval from the Autorité de Contrôle Prudentiel et de Résolution), thus manages the financial flows and the maintenance of the securities movement register, in a sequential and more efficient manner.
The digitization of financial securities allows for better capital management, particularly through the digitization of securities movement registers thanks to the blockchain.
The digital maintenance of a company's securities movement records is legally recognized as having the same evidential value as paper securities movement records. This innovative infrastructure gains in security and transparency through the blockchain in view of the increased difficulty of modifying the information recorded in it.
Thus, since the DEEP ("shared electronic recording device") order, published in the Journal Officiel on December 9, 2017, as well as the implementing decree of December 24, 2018 on blockchain, the digitization of securities movement registers, as practiced on the platform, has allowed for the facilitation of information processing and a centralization of the monitoring of transfers of ownership of securities when they are recorded for the benefit of the acquirer in the DEEP. The DEEP record keeping process also provides a legal presumption of ownership of the holder of the securities.
Our partner acts in the name and on behalf of companies issuing incoming, unlisted assets, in particular, but not exclusively, in the qualification of shares of non-trading companies or in the qualification of financial securities referred to in Article L. 211-1, II of the CMF and registered in a DEEP under the conditions provided for in Article L. 211-3 et seq. of the CMF (the "Security Tokens")
Our partner has been approved by the ACPR as a Payment Service Provider Agent to manage the financial flows on the platform. If usually, a private transaction takes at least 5 days to complete, thanks to the blockchain on the platform, transactions are instantaneous and doubly secure.
Regulatory compliance is a priority. That's why the platform offers a double security by carrying out a quick verification process of the digital identity of investors (KYC) and companies (KYB) at the account creation. The verification of the investor's identity consists of uploading two documents proving his identity and sending some additional information. For legal entities, the identity of the legal signatories as well as basic information about the constitution of the legal entity will be requested.
The management of the identity of the platform's users is necessary for a better security of its customers, whether it is by verifying the eligibility of investors in the establishment of transactions, or for the certification of signatures of financial contracts.
Our partner gives access to a private market facilitating the connection of investors between them in the context of a transfer and an acquisition of financial securities. An investor can offer for sale the securities he holds on a company hosted on the financial platform.
