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The largest private bank in Brazil has partnered with the British Standard Chartered bank to create a blockchain-based platform for small loans, according to a press release published by Itau on Tuesday 4 December.
Itau Unibanco, also an important Latin American banking group, and Standard Chartered, both offer international banking services. The two entities successfully conducted a proof-of-concept (PoC) for the mentioned platform, based on Corda Connect developed by the startup blockchain in New York R3.
In addition, Itau and Standard Chartered, along with US multinational financial services firm Wells Fargo, issued a $ 100 million loan to test the platform. According to the statement, the points of the test contract were effectively negotiated during the experiment and the document was then checked to verify compliance with the conditions established and finally signed by both parties.
Ricardo Nuno, the head of the Itau treasury department, said that blockchain technology has improved communication between banks, which is normally made up of 2,000 words for a similar issue, writes Reuters.
Nuno also added that the money was not actually transferred, as it was a process, but that the platform will definitely allow it in the future.
Germana Cruz, head of Latin America's financial institutions at the Standard Chartered, told Reuters that the company could use the results of testing to issue loans on the blockchain in the region.
Global banking groups have previously used the blockchain to increase the speed of issuing union loans, as well as reducing operating costs. In 2017, seven major international banks – including BNP Paribas, BNY Mellon, HSBC and ING – collaborated to conduct major tests in the market based on blockchain syndicated technology, called Fusion LenderComm and supported by R3.
Another banking giant, Banco Bilbao Vizcaya Argentaria (BBVA), based in Spain, made a $ 150 million blockchain syndicated loan in October. The French banking group BNP Paribas and the Japanese banking holding Mitsubishi UFJ Financial Group (MUFG) also took part in the process.
Cointelegraph also reported that the US bank Natwest decided to launch a blockchain-like platform based on R3 Corda technology in the syndicated loan market in November.
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