BBVA Issues $91 Million Loan Using Two Blockchains

Spanish banking giant BBVA has completed a pilot that issued a $91 million corporate loan using two different blockchain technologies.

AccessTimeIconApr 26, 2018 at 12:15 p.m. UTC
Updated Sep 13, 2021 at 7:52 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Spanish banking giant BBVA has completed a pilot that issued a €75 million ($91 million) corporate loan using two different blockchain technologies.

According to a report from the Financial Times on Thursday, 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 blockchain.

The report said that, as as a first step, the pilot requires both the borrower and the bank to start terms negotiation on a privately held distributed ledger that simultaneously updates the transaction's progress on both sides.

As such, 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, the report said.

The latest experiment expands BBVA's existing work in applying blockchain technology across a range of its business operations.

As previously reported by CoinDesk, the bank has already tested a blockchain solution for paperless trade transactions between Europe and Latin America. And in October of last year, it moved to use distributed ledger technology to match the foreign exchange between itself and its Mexican subsidiary.

BBVA is not the only established financial institution investigating the technology's potential to streamline loans transactions.

Recently another two European banking giants – Credit Suisse and Dutch bank ING – also announced the completion of a live $30 million securities lending transaction based on a blockchain application co-developed with enterprise blockchain consortium R3.

BBVA image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.