Spain’s BBVA Bank Leverages Blockchain To Finalize A $150 Million EUR Loan With Porsche Holding
Major Spanish Bank BBVA Uses The Blockchain To Close $150 Million EUR Loan With Porsche Holding
Banco Bilbao Vizcaya Argentaria (BBVA), the second largest bank in Spain, has recently closed a $150 million USD loan deal with Porsche Holding, the largest car distributor in Europe and used the blockchain technology to secure the transactions.
This was the first time that BBVA made a loan based on the blockchain technology for a non-Spanish borrower. While the bank already has done it with national customers, as it was the case with Red Elétrica de España (REE) in November, this is a new step for the company and for the blockchain technology.
According to reports made by local news sites, the deal used the same blockchain technology that BBVA always used, which mixed private and public blockchains, in order to make the loan transactions.
The deal with Red Elétrica de España was made using Hyperledger and had the participation of BBVA, BNP Paribas and MUFG, as well as two legal advisory companies and it, was done on the Ethereum blockchain. Now, in the Porche Holdings loan, a very similar structure was used by the bank.
Frank Hoefnagels, the head of BBVA in Germany, has affirmed that this kind of transaction is very quick and safe. According to him, the transaction uses the blockchain to simply the process at the same time that its time is reduced as the speed is highly improved.
BBVA Leads Use Of The Blockchain Tech
Back in April 2018, the BBVA bank has become the first bank in the world to conduct the entire loan process using a mixed portion of blockchain technology, both public and private. The company led many others to follow the same path. Now, more banks are trying to use the technology, as it has become clear that the blockchain is a path for cross-border transactions, settlements and loans.
Porsche, on the other hand, has tested blockchain apps for its products and claims to be the first automobile manufacturer to use the blockchain in a car with success, but the technology is still in development.