Banco Bilbao Vizcaya Argentaria (BBVA) became the first global bank to issue a loan using blockchain technology.
The Spanish bank has closed a EUR75 million corporate loan deal with technology partner Indra.
The bank's latest exploration of the technology focuses on the entire issuance process, including negotiation of terms and signing the corporate loan.
The system used for the trial is based on both a private digital ledger and the public Ethereum (ETC/USD) blockchain.
“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,” BBVA CEO Carlos Torres Vila noted.
BBVA claims the system can reduce the negotiation phase from days to hours, following which the completed contracts are moved onto the Ethereum blockchain for immutable record keeping.
By Jade Olafson