Spanish Bank BBVA Uses Blockchain Technlogy To Perform Corporate Loan Dealbr>
Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) has successfully completed a global corporate loan transaction using blockchain technology.
BBVA reported that it has closed a €75 million ($91M USD) corporate loan deal with technology partner Indra. The pilot transaction was conducted on a mutually distributed ledger that informed both the bank and the borrower of the loan’s progress. It addressed the complete process – from negotiation of the deal to the signing of the loan.
BBVA said the pilot transaction reduced the time taken to complete the deal from days to hours by recording and tracking interactions, reviews,and iterations over an in-house-developed digital ledger using the Hyperledger platform. Once the contract terms were agreed, they used ethereum’s public blockchain (testnet) to register the “hash” or unique identifier related to the transaction’s documentation.
Derek White, BBVA’s global head of customer solutions, said that the bank’s digital transformation continues to gather pace and reach into new areas, and this blockchain pilot is a prime example of where disruptive technology can add real value to business processes.
“The use of blockchain in this transaction has greatly increased transparency and speed, while equally improving efficiency – it’s a win-win for both us and Indra,” said White.
Borja Ochoa, Indra’s Director of Financial Services, said that blockchain was “destined to become one of the technologies that will change the way we interact with products and financial services” and that the pilot “strengthens the position of BBVA and Indra as leaders in the practical application of blockchain technologies.”
BBVA has been conducting pilot projects to explore the application of blockchain technology in multiple use cases across the bank. In April 2017, BBVA completed the first real-time cross-border money transfer using Ripple blockchain technology between Spain and Mexico. In October 2017, the bank launched a blockchain pilot for foreign exchange transactions. The following month, it became the first bank to use blockchain in a pilot program to automate document presentation in import-export operations between Spain and Latin America.