Banco Bilbao Vizcaya Argentaria, also known as BBVA, has recently signed a new blockchain-based loan with the civil engineering firm ACS Group. According to an official statement by the bank, the agreement with ACS will allow BBVA to provide a long-term bilateral corporate loan of €100 million ($117 million).
The new loan contract will apparently boost the efficiency in financial processes of the company. This will allow better transparency and traceability of contractual process. The blockchain-based loan will allow both parties to independently monitor the stages of a contract, as well as the conditions within it.
In April 2018, the BBVA successfully launched “the first global corporate loan transaction” using blockchain technology with the Spanish Information technology Indra.
Last month, BBVA announced the signing of another blockchain-based agreement with one of the leading global oil and gas industry companies, Repsol, to renew its credit line that is worth €325 million ($377 million) which will be the first application of blockchain in the sphere of corporate finance.
While the company is embracing blockchain technology, it will also apply the distributed ledger technology (DLT) in processing and handling document submissions. The CEO of BBVA, Carlos Torres, also claimed that blockchain is “not mature” and faces major issues. However, the recent BBVA initiatives show the very opposite and show that the technology can be applied in many relevant use cases.
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