{"id":249729,"date":"2021-05-14T15:29:35","date_gmt":"2021-05-14T12:29:35","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/spanish-stock-exchange-ready-to-test-blockchain-based-sme-financing-system\/"},"modified":"2021-05-14T15:29:35","modified_gmt":"2021-05-14T12:29:35","slug":"spanish-stock-exchange-ready-to-test-blockchain-based-sme-financing-system","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/spanish-stock-exchange-ready-to-test-blockchain-based-sme-financing-system\/","title":{"rendered":"# Spanish stock exchange ready to test blockchain-based SME financing system"},"content":{"rendered":"

“# Spanish stock exchange ready to test blockchain-based SME financing system <\/strong>”
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Spanish stock exchange Bolsas y Mercados Espa\u00f1oles, or BME is set to test its blockchain infrastructure for small- and medium-sized enterprise financing following a successful pilot run back in 2020.<\/p>\n

According to Finextra<\/a>\u00a0on Friday, this next set of trials by the BME will involve businesses that are part of the country\u2019s SME financing ecosystem under the aegis of a regulatory sandbox created by Spain\u2019s Ministry of Economic Affairs and Digital Transformation.<\/p>\n

As previously reported by Cointelegraph, 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.<\/p>\n

The aforementioned pilot phase that occurred back in 2020 drew participation from investment servicing companies and business credit providers.<\/p>\n

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.<\/p>\n

Indeed, the BME\u2019s blockchain platform aims to facilitate SME financing digital assets that represent funding avenues like convertible notes and participatory loans.<\/p>\n

The project marks a further extension of the BME\u2019s 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.<\/p>\n

For the SME financing project, the blockchain platform will also include a digital wallet for SMEs to store their assets \u2014 both financial investment instruments and electronic money.<\/p>\n

chokepointsTrade finance is another touted use case for blockchain with decentralized ledger technology<\/a> solutions being bootstrapp<\/a>ed to eliminate significant chokepoints affecting SME financing.<\/p>\n

Apart from SMEs, major banks are also looking towards blockchain technology to limit exposure to trade finance risks.<\/p>\n