Following a successful pilot run back in 2020, blockchain infrastructure for small- and medium-sized enterprise financing is to be tested by Spanish stock exchange Bolsas y Mercados Españoles
Businesses that are part of the country’s SME financing ecosystem under the aegis of a regulatory sandbox created by Spain’s Ministry of Economic Affairs and Digital Transformation are the next set of trials by Bolsas y Mercados Españoles as per Finextra on Friday.
This sandbox is seen as an important step in promoting greater fintech development in Spain, with a focus on improving greater competition while reducing entry barriers for participants as formerly reported by Cointelegraph.
The aforementioned pilot phase that occurred back in 2020 drew participation from investment servicing companies and business credit providers.
As part of the second round of tests, the BME will likely be looking to examine the suitability of the Ethereum-based system in raising capital for limited liability companies outside the usual traditional bank financing route.
Indeed, the BME’s blockchain platform aims to facilitate SME financing digital assets that represent funding avenues like convertible notes and participatory loans.
The project marks a further extension of the BME’s digitization policy in recent times. Back in March 2019, the Spanish Stock Exchange completed pilot testing of its blockchain-based system for electronic certificates of collateral pledges.
For the SME financing project, the blockchain platform will also include a digital wallet for SMEs to store their assets both financial investment instruments and electronic money.