Blockchain Financial Solutions Planned By Spanish Banking And Energy Giants

Blockchain, News | June 21, 2018 By:

Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA) has teamed with Spanish energy giant Repsol to develop corporate finance solutions based on blockchain technology.

As the first project of the partnership, the two companies recently closed a revolving credit deal using a blockchain solution developed by the two companies. BBVA conducted the entire process of a loan worth €325 million ($375M USD), from the negotiation of terms to signing, on a distributed ledger.

“The solution developed by BBVA and Repsol used different types of blockchain,” the release said. “The negotiation between BBVA and Repsol and agreement of the conditions was developed using a private blockchain network (Hyperledger), while the signed contract was registered used the ethereum test network (testnet) through a hash, or unique document identifier that guarantees its immutability.”

The companies said the blockchain solution reduced the revolving credit deal process to a matter of hours rather than days in a fully transparent operation that allowed the tracking and approval of the documentation involved.

Alicia Pertusa, Head of Strategy and Blockchain at BBVA, said the first pilot by BBVA and Repsol kicks off an alliance to explore the potential of blockchain technology in corporate finance.

“This operation is the fruit of BBVA’s pursuit of integrating innovative and disruptive financial products for corporate clients and to offer them the best solutions that meet their needs,” Pertusa said.

Repsol said the partnership with BBVA advances its focus on digitization and innovation. It has earmarked blockchain as a technology with great potential and competitive edge for its new businesses.  The Spanish energy giant already has a lab for its lines of development in improving financial processes with added security and efficiency and advances in the supply chain and client fidelity.

“Repsol wants to actively take part in collaborative environments,” said Nuria Ávalos, the head of Blockchain and Digital Experimentation at Repsol. “Blockchain is a disruptive technology that is here to stay and the agreement with BBVA advances our strategy of driving digitization in all areas of our activity.”

BBVA is a member of leading global blockchain consortiums such as R3, Hyperledger, Enterprise Ethereum Alliance and Spain’s Alastria. It recently unveiled the first corporate loan using blockchain in conjunction with the Spanish technology group Indra in a deal worth €75 million ($86M USD). Earlier this week, BBVA CEO Carlos Torres Vila announced that the bank will begin testing the negotiation and contracting of syndicated loans using blockchain.