On Thursday, BBVA announced it has teamed up with Indra to complete its first global corporate loan transaction using blockchain technology. According to BBVA, the pilot enabled the closing of a €75 million loan using a solution it developed based on distributed ledger technology (DLT). For Indra, the project notably strengthens its blockchain expertise. While sharing details about the loan’s development, BBVA explained:
“Blockchain technology can make important improvements to this process as is demonstrated by this pilot. On one hand, DLT technology guarantees transparency and traceability of the contracting process: both Indra and BBVA were able to independently consult the status of the transaction at every stage thanks to blockchain’s traceability feature. Additionally, the solution also digitized the negotiation process, which improved the management time, reducing it from days to hours.”
BBVA reported that the negotiation process and completion of conditions between it and Indra was developed on an internal solution built on private blockchain technology (Hyperledger). Once the contract was agreed, Ethereum’s public blockchain (testnet) was used to register the hash or identifier related to the transaction’s documentation. BBVA also revealed this pilot represents a significant advance in the exploitation of DLT technology, combining public and private environments. Ricardo Laiseca, BBVA’s Head of Global Finance for Corporate and Investment Banking, stated:
“BBVA is involving its clients in project processes such as requirements definition, development, and implementation. In this way, BBVA provides its customers with not only the best financial solutions, but also the most advanced technical and innovative capabilities.”
Borja Ochoa, Director of Financial Services at Indra, also commented:
“Indra is at the vanguard when it comes to creating applications based on blockchain, which is destined to become one of the technologies that will change the way we interact with products and financial services. This pilot served as an opportunity to take part in the first corporate loan operation based on blockchain technology in the world. The operation strengthens the position of BBVA and Indra as leaders in the practical application of blockchain technologies.”
BBVA’s Global Head of Customer Solutions, Derek White, then noted:
“BBVA’s digital transformation continues to gather pace and reach into new areas, and this is a prime example of where disruptive technology can add real value to business processes. The use of blockchain in this transaction has greatly increased transparency and speed, while equally improving efficiency – it’s a win win for both us and Indra.”
BBVA added it is developing different blockchain initiatives related to international payments, international trade, and foreign exchange transactions. BBVA and Indra will be participating in the main international consortia that are looking to create standards such as R3, Hyperledger, Enterprise Ethereum Alliance and Spain’s Alastria.