Spanish Bank BBVA, EIB Sign €1B Blockchain-Based Synthetic Securitization

Blockchain, News | December 21, 2018 By:

Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) and the European Investment Bank Group have signed a synthetic securitization of €1 billion ($1.1B USD) on blockchain.

The agreement, whcih is the first synthetic securitization to be supported by blockchain technology in the European Union (EU), aims to foster support for small and medium-sized enterprises (SME) in Spain, providing them with loans on favorable terms.

The European Investment Bank Group, formed by the European Investment Bank (EIB) and European Investment Fund (EIF), have repoortedly granted BBVA a €60 million ($68M USD) synthetic guarantee that will be used to provide up to €360 million ($412M USD) to finance new investment projects of small Spanish SMEs and midcaps.

To negotiate this agreement, the parties used BBVA’s blockchain platform – from the origination to the agreement signing. All the negotiation was recorded on the private blockchain Hyperledger, while a hash or unique identifier of the signed agreement were recorded on the public blockchain ethereum (testnet).

“​BBVA is committed to boosting the growth, competitiveness and digitization of the Spanish SMEs,” said Carlos Torres, CEO of BBVA. “In addition, we are proud of the blockchain platform developed in-house by BBVA, which was used to negotiate this agreement.”