Spanish Banking Giant BBVA Becomes the First Bank to Pilot a Loan Using Blockchain

Spain’s second-argent banking lender – Banco Bilbao Vizcaya Argentaria (BBVA) has now become the first banking institution to issue a loan to one of its corporate clients, entirely using the blockchain technology.

As reported by the Financial Times, BBVA issued a €75 million ($91.33 million) loan, conducting the entire process—from negotiations to the signing of documents—using a mutual distributed ledger. This system allowed both parties to view every step of the loan disbursement process in real time.

BBVA stated that, as a result of using blockchain technology, the negotiation time had been reduced from days to just hours. Consequently, the bank described this achievement as a “significant advance in the exploitation of [distributed ledger] technology.”

Carlos Torres Vila, CEO of BBVA said:

“Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, security. It’s another strong example of how disruptive technology can be used to add value to financial services, something that is central to our strategy.”

He also said that apart from this pilot project with Spain’s telecom giant Indra, the bank also has “several more transactions in the immediate pipeline”.

Borja Ochoa, Indra’s Director of Financial Services, stated that blockchain will inevitably become one of the transformative technologies reshaping how individuals engage with financial products and services. He added that the pilot reinforces the leadership of BBVA and Indra in the practical application of blockchain technologies.

This is not for the first time that BBVA has been using the blockchain technology for its products or services. Last year, the bank used DLT for a paperless trade transaction between Spain and Latin America. Also, in October 2017, the bank used the blockchain technology in order to match foreign exchange between itself and a Mexican subsidiary.