What’s Going On?
Spain’s BBVA has become the first global bank to issue a loan using blockchain technology,
reported the Financial Times.
Why Does It Matter?
BBVA said it carried out the entire process for a €75m corporate loan on a mutually distributed ledger that kept the bank and borrower up to date on progress, reported the FT, and blockchain tech allowed them to cut negotiation time from “days to hours,” said BBVA.
BBVA is the second Spanish bank to make a significant investment in blockchain, Last week, Blockchain 24-7 reported Santander had launched One Pay FX, a foreign exchange service that uses blockchain technology to make same-day international money transfers.
What Do The Big Banks See In Blockchain?
BBVA chief executive Carlos Torres Vila told reporters: “Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, security. 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.”
Vila said the bank had “several more transactions in the immediate pipeline,” reported Cointelegraph, which added the bank would be launching a pilot program with Spanish telecom corporation Indra.
The FT noted BBVA is a well-known early adopter of new technology and business models, having
invested in new ventures including the UK’s Atom Bank and German fintech solarisBank.