BBVA, The First Bank to Issue Corporate Loan Using Blockchain, To Improve Efficiency
BBVA, The First Bank to Issue Corporate Loan Using Blockchain to Improve Efficiency
Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) is the first bank to issue a loan using distributed ledger technology that underpins digital currencies and has the potential to transform the banking process.
The Spanish bank says the pilot transaction reduced the time needed to complete the deal from days to hours by recording and tracking interactions, reviews and iterations over an inhouse-developed digital ledger using the Hyperledger platform.
BBVA said it carried out the entire process for a €75m corporate loan, from the time the loans were negotiated to the signing of the loan, on a mutually distributed ledger that kept both the bank and borrower up to date on the loan’s progress.
The CEO of BBVA, Carlos Torres Vila, said the bank had “several more transactions in the immediate pipeline”, and that the bank would also be launching a pilot program with Spanish telecom corporation Indra. Indra has described itself as “at the vanguard” for Blockchain applications.
The use of blockchain in this transaction has increased transparency and speed, while improving efficiency – it’s a victory for us and Indra. ”
“Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, security,” said Carlos Torres Vila, BBVA chief executive.
“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.”
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