The Banco Bilbao Vizcaya Argentaria – also known as BBVA – has signed a blockchain loan with ACS Group firm. The information has been released on July the 19 by BBVA in a blog post.
The main intention behind this agreement with ACS is to provide a long-term bilateral corporate loan of €100 million. This contract will be very positive for the company because traceability and transparency will be enhanced and financial transactions will be more efficient.
The blog post reads as follows:
“BBVA is a benchmark in the transformation of the financial industry. In the area of wholesale banking, the Group is innovating both financial products as well digitizing solutions with the aim of enhancing the experience of business clients and corporations.”
By using blockchain technology both companies can monitor the stages of a specific contract and its conditions. The pilot project includes the negotiating process and it will be reducing tha management time from days to just some hours.
It is important to mention that the bank has already been working in the past with distributed ledger technology. Back in April it was able to carry out the ‘first global corporate loan transaction,’ using distributed ledger technology (DLT).
The last month, BBVA partnered with the energy company Repsol to develop financial solutions on the blockchain. Carlos Torres, BBVA’s CEO, said that blockchain technology has several advantages that will allow companies improve their efficiency and businesses.
But he said that the technology is not mature yet and that it is still facing major issues that need to be solved by regulators. He explained that BBVA wants to be prepared when the technology will be ready and properly regulated.