- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
Spain’s second-largest bank, Banco Bilbao Vizcaya Argentaria or BBVA, has closed a 150 million Euro loan using blockchain technology with Porsche Holding. Porsche is the largest car distributor in Europe. This news comes after BBVA claimed to be the first global bank to conduct an entire loan process using blockchain. This is a clear statement of recognition for blockchain’s efficiency for lending. More and more financial institutions continue to add support for or adopt blockchain technology completely into their operations.
“This transaction,” says Frank Hoefnagels who is the head of BBVA CIB in Germany “is all about putting blockchain technology into meaningful practice in the interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution.”
This transaction is the latest in a number of notable distributed ledger based deals conducted by the Spanish bank with corporate customers. Some of which are: an arrangement of an EUR150 million syndicated loan for Red Eléctrica Corporación, renewal of an EUR325 million credit line with Repsol and the signing of an EUR100 million long-term bilateral corporate loan with ACS.
This transaction marks another major fortune 500 company utilizing the powers of distributed ledger and blockchain in its daily businesses. Big corporations such as Samsung, Amazon, Walmart, Unilever, HTC and many more have shown their interest in implementing the powerful technology of the distributed ledger into their systems.
The powers that blockchain brings to the table for their organizations include swift transactions, transparency, the uniqueness of each transaction, anti-tampering and much more. Which is why many companies have started investing heavily into this technology.
The latest deal with Porsche is the first conducted by the Spanish bank with a non-Spanish borrower that was carried out using the same private and public blockchain technologies as the above-mentioned deals. BBVA holds distributed ledger technology to particular relevance because of the ‘speed of execution’ it brings to these transactions. This factor is believed to be key in the success of acquisition finance transactions.