Banco Bilbao Vizcaya Argentaria (BBVA) made history by becoming the first global bank to use blockchain technology to issue a loan. The Spanish multinational bank in its latest statement outlined that it undertook the whole loan process on a mutually distributed ledger that informed both the borrower as well as the bank of on the progress of the loan. It is worth noting that it was from the point of negotiating the terms to the actual signing endeavor.
The amazing part about Blockchain is fundamentally its aspect of cutting down on the on the negotiation time. This time around, it by a significant margin managed to reduce the negotiation time for the €75 mln loan. To break it down further, that was moved from a matter of days to hours and BBVA swiftly referred to the process as a major advancement in line with the exploitation of [distributed ledger] technology.
Carlos Torres Vila, who happens to be the BBVA CEO has moved ahead to disclose that the bank has several more transactions in the immediate pipeline. In addition, he stated that the bank had plans underway to unveil a pilot program with Indra, a Spanish telecom corporation. Indra in giving a description of itself outlined that it was at the vanguard for blockchain applications.
According to several market observers, blockchain pulls along with a great appeal in the segment of corporate loans. It is also important to mention that syndicated and corporate lending is fundamentally more complicated compared to consumer lending because the records have to be accessed by a lot of people.
Torres Vila asserts that Blockchain is what it takes to provide clear advantages for all the facets of the corporate loan markets. He got more specific to point out to the terms of efficiency, security and above all transparency. According to him, that stuck out as the other perfect example on how disruptive technology can be utilized in value addition to the financial services of the bank.