The French government has cleared the way for the use of blockchain technology in the trading of unlisted securities, as it rewrites is rules to stimulate the innovation economy, Reuters reported.
The new rules mean that banks and fintech companies can set up blockchain platforms where unlisted securities can trade instantly, cutting out middlemen like brokers and custodian banks.
“The use of this new technology will allow fintech firms and other financial actors to develop new ways of trading securities that are faster, cheaper, more transparent and safer,” Finance Minister Bruno Le Maire said in a statement.
Le Maire added that the new rules would be “another asset for Paris’ attractiveness as a financial center” as the sector seeks to put itself on the fintech map, where London currently looms large.
Securities listed on financial exchanges will still be required to pass through custodians and clearing houses.