The Spanish banking giant BBVA has completed a pilot project that has granted a $ 150 million syndicated loan to the blockchain.
According to a report by the Financial Times on Wednesday, the bank has arranged the loan for Red Electrica, the national grid operator in Spain.
A syndicated loan is one, in which a group of banks lends itself to a single borrower. In this case, the BBVA co-financiers were the Japanese Mitsubishi UFJ Financial Group and the French BNP Paribas.
Loan data was marked based on the date and time at each step in the process. The loan agreement was finally signed between the three banks and registered on the blockchain ethereum, preserving its "authenticity", says the FT.
In a traditional syndicated loan process, banks rely on fax machines to share complex information, which not only delay the process, but are also expensive. Blockchain is seen as a means of helping banks to exchange information almost in real time, reducing the loan process from a couple of weeks to a day or two. Also cut manual processes reduces operating costs.
Reportedly, BBVA plans to conduct more blockchain drivers for syndicated loans in the future. The bank has, in fact, also explored the blockchain technology in the past.
In April, he completed a pilot project that issued a corporate loan of $ 91 million, using both a private digital ledger and the public blockchain ethereum.
BBVA image through Shutterstock