One of the Spanish Banks, Banco Bilbao Vizcaya Argentaria (BBVA), has made a huge step towards adopting Blockchain technology within its systems. The BBVA has become the first global bank to issue a loan utilizing the benefits of Blockchain technology.
Spanish Bank BBVA issues Blockchain-based Corporate loans
According to a number of online reports, the Spanish multinational bank BBVA has stated that it carried out the loan process on a mutually distributed ledger. In fact, according to the bank, everything starting from the negotiation of terms to signing the document has been conducted via Blockchain. The distributed ledger then has informed both parties of the loan’s progress.
One of the primary benefits of using Blockchain for such operations is the ability to save time. By using a distributed ledger, the bank states, the negotiation time for €75 mln loan has been cut from “days to hours”. The bank has called this step a “significant advance in the exploitation of [distributed ledger] technology”.
The pilot project of BBVA
The CEO of BBVA, Carlos Torres Vila has stated that the bank had “several more transactions in the immediate pipeline.” He has added that the bank is also now looking into launching a pilot program with Spanish telecom corporation Indra. The latter has stated that it is “at the vanguard” for Blockchain applications.
Reportedly, Blockchain is capable of providing a number of advantages for corporate and syndicate loans since the lending in this sphere is more complex than usual consumer lending due to a number of parties involved. Torres Vila has added:
“Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, [and] security… It’s another strong example of how disruptive technology can be used to add value to financial services, something that is central to our strategy.”
The pilot project of BBVA will utilize a private Blockchain for negotiation and processing loans. After the loan will be processed, it will be then registered and completed on the Ethereum public Blockchain.