The Ministry of Economic Affairs and Digital Transformation has admitted in its call for the controlled space of tests (sandbox) for the digital transformation of the financial system the project presented by BME, with the collaboration of entities of the SME financing ecosystem.
The project consists of the creation of an alternative financing platform or “marketplace” that offers security to investors and that makes it easier for small and medium-sized companies to obtain financing through the issuance of participative loans and convertible notes represented as digital assets in a blockchain network. The platform is mainly aimed at facilitating the financing of limited companies, which, in addition to their size, due to their status as SL, are limited in their financing capacity other than banks.
Apart from the participation of issuers and investors, investment services companies (ESI) acquire an important role in the platform both in the onboarding and validation processes as well as in the commercialization and management of emissions.
In order to optimize the processes in this type of financing and obtain the benefits of blockchain technology, the platform integrates an electronic money solution (EDE) so that users have an e-wallet where all their assets are stored, both the electronic money as financial instruments represented as digital assets.
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BME intends that this platform also serve as a link with BME Growth, the SME Stock Exchange, by creating a fast track to this market, putting companies in contact with the appropriate professionals to, for example, facilitate their conversion into Companies Anonymous at the time of the conversion of the loans into capital or to initiate the application procedures for the incorporation of said shares in BME Growth.
Issuing companies will also be able to count on the support of BME’s Pre-Market Environment, an initiative launched three years ago by BME that consists of a training and networking program for expanding SMEs to learn about the operation of capital markets and access to private and institutional investors.
Among the advantages provided by this project submitted to the sandbox are facilitating regulatory compliance (through the improvement or standardization of processes), improving regulation and the exercise of financial supervision, increasing the efficiency of entities, increasing competition from Spain. and offer benefits to users of financial services, such as transparency, real-time information and integrated management in a single solution.
The entry of the project into the sandbox is the second phase in the project roadmap, after a successful pilot carried out in the summer of 2020 with some investment services entities, issuers and investors.
The project’s blockchain network is based on Ethereum technology.