Brazil's largest private bank, Itaú Unibanco and Standard Chartered, successfully completed the development and testing of the first draft concept block in Latin America for loans.
In parallel, Itaú Unibanco borrowed $ 100 million through a club loan – a type of small syndicated loan – from Standard Chartered and Wells Fargo.
The PoC blockchain was created using the open source Corda Connect platform provided by the company blockchain software company R3. Participants were able to monitor loan agreement reviews, comments and approval sequence in a secure, transparent and paperless format.
As sequences of changes are maintained, participants can also monitor and subsequently monitor changes that result in closing the agreement.
Test simulations were conducted through the negotiation phase of terms and conditions, including the revision of the loan contract; the signature process, delivering what was agreed in the previous phase, as well as the signature itself.
According to the banks, the use of the blockchain to negotiate such agreements eliminates the exchange of e-mails, prevents problems checking the version of the agreements and allows participants to ensure that the requirements for the conclusion of the transaction are met in real time .