French fintech Kriptown raises €4.2M for blockchain-based SME stock exchange

French fintech Kriptown has secured €4.2 million Series A funding to build the first European stock exchange dedicated to SMEs, under the European DLT Pilot Regime, allowing for the creation of financial markets built on blockchain technology. 

SMEs are the backbone of Europe’s economy, yet equity financing solutions are limited. Kriptown aims to bridge this gap.

A New Asset Class for Investors

Kriptown will offer asset managers and individual investors access to shares in SMEs, with the added benefit of liquidity through a 24/7 secondary market. This opens up new opportunities for investors and significantly expands the range of PEA-PME eligible assets.

PEA-PME (Plan d'Épargne en Actions pour les Petites et Moyennes Entreprises) is a financial framework introduced in France in 2014 to support small and medium-sized enterprises (SMEs) by diversifying their funding sources. 

With the DLT Pilot Regime, Kriptown is at the forefront of a regulatory transformation  that allows for the creation of financial markets built on blockchain technology. As a DLT TSS, Kriptown will combine the roles of MTF (Multilateral Trading Facility) and CSD (Central Securities Depository) within a single infrastructure, ensuring instant delivery versus payment with no counterparty risk.

Kriptown has officially submitted its DLT TSS (Trading and Settlement Systems) licence application to the ACPR (French Prudential Supervision and Resolution Authority) under the European DLT Pilot Regime. 

The round was led by BNP Paribas, Bpifrance, and Centilux Family Office led the round.  

Mark Kepeneghian, Kriptown's co-founder, stated:

"Having BNP Paribas and Bpifrance as shareholders strengthens our mission to create a dynamic financial ecosystem for SMEs. Our goal of reshaping market infrastructure aligns perfectly with their vision of innovation."

The investment follows a €2 million investment for Axiology, a DLT securities trading and settlement infrastructure in February. 

Lead image: Kriptown. Photo: uncredited.