A big Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) has issued a $150 mln syndicated loan to a local managing energy company Red Electrica and has recorded the deal data in the blockchain, as reported by Financial Times.
In particular, a distributed ledger included user code and time stamps of every stage in the process of loan granting. Thus, all deal participants – Japan’s Mitsubishi UFJ Financial Group and France’s BNP Paribas among them – received access to relevant information about the status of loan negotiations.
“The unique identificator of the signed contract has been recorded in the public Ethereum blockchain, which guarantees its authenticity and immutability by third parties”
– indicated the bank’s spokesman.
Through blockchain, parties of the syndicated loan managed to avoid the cost-intensive exchange of information through fax and reduce the time frame for loan granting to just two days. BBVA plans to execute several other blockchain-based loan granting pilot projects.
Previously in April, BBVA registered an approval of $75 mln credit for one of the corporate clients in the blockchain. And in June, in collaboration with Banco Santander the bank utilized blockchain for securities operations. It is peculiar, however, that in the same month BBVA’s chief executive Carlos Torres has called blockchain technology immature and prone to serious issues.