The BBVA, Spain´s second biggest lender, is the first bank to use blockchain technology to issue a loan, successfully completing a pilot of €75 million this Tuesday. As reported by the Financial Times, the Spanish bank completed the first issuance of a corporate loan in two different blockchains.
The BBVA has been exploring the possibilities of blockchain technology over the last few years, and this initial success could mean a change in the way transactions are done Spain. According to BBVA Chief Executive, Carlos Torres Vila,
“Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency [and], security. It’s another example of how disruptive technology can be used to add value to financial services, something that is central to our strategy.”
This implementation of Blockchain (the biggest by the bank to date) cuts down loan negotiation time from “days to hours”, added the BBVA Chief Executive, and means a “significant advance in the exploitation of blockchain technology”. Although there aren’t many details about the transactions, BBVA declared that both parties of the of the negotiation recorded simultaneously all the terms and the loan´s progress in a mutual blockchain.
This isn’t the first implementation of blockchain by BBVA. Almost a year ago the bank used a startup, Ripple´s blockchain, in a successful, real-world, money remittance pilot between Spain and Mexico, reducing the payment times between the countries to seconds.
by Samuel Larreal