Home / Blockchain / Porsche has a $ 170 million loan using BBVA's Blockchain platform

Porsche has a $ 170 million loan using BBVA's Blockchain platform


Porsche lent a loan to support its proposed strategic acquisitions using the DLT (distributed ledger technology) platform of the ever-changing Spanish bank BBVA.

The loan, valued at € 150 million (the equivalent of almost $ 170 million dollars) is, says a press release from BBVA:

"The first acquisition term loan never agreed with the blockchain technology".

Forward acquisition loans are provided for a specific purpose and period. In this case, Porsche Holding Salzburg, a subsidiary of Volkswagen AG, is seeking to expand its retail distribution network in Europe and Asia.

The pilot also makes Porsche, still the largest car dealer in Europe, the first non-Spanish borrower to use BBVA DLT to negotiate and close a corporate loan.

Frank Hoefnagels, director of Banco Bilbao Vizcaya Argentaria (BBVA) Corporate Investment Banking (CIB) in Germany, is "proud" to be on a common blockchain path with a long-standing partner. He adds:

"This transaction consists of putting blockchain technology into a significant practice in interactions with our customers."

Hoefnagels illustrates a key step for blockchain technology, after numerous pilots in the industry, the expectation now is to see more real cases and blockchain applications. For BBVA, who has been actively working on its technology for some time, this is obviously important.

Use of Blockchain to create a DIY financing model

BBVA hopes to use blockchain to automate negotiation processes and minimize operational risks as well as improve customer experience. The bank plans to progress towards a "do-it-yourself" (do-it-yourself) financing model for its corporate and corporate clients. The bank says:

"Blockchain technology also guarantees traceability and immutability, making the documentation process safer and more transparent."

BBVA believes that its latest blockchain operation demonstrates how new technologies can "provide a leap in efficiency in the financial markets", something that still forms the basis of the promise of blockchain.

Dominik Paschinger, Branch Manager of Porsche Corporate Finance, Belgium, says that "digitization" is a fundamental part of the "Strategy of Porsche Holding 2025" and that:

"The goal is to advance in all fields of activity, we think that blockchain technology has great potential."

BBVA has recently used its blockchain platform to finalize a syndicated loan for Red Eléctrica of the same value and extend a credit line with Repsol worth 325 million euros, approximately 367 million dollars. He has already experimented with distributed management loan processes using both the Ethereum and Ripple blockchains, appointing himself as the first global bank to successfully complete the blockchain-based corporate loan.

Shutterstock foreground image.

Get an exclusive cryptographic analysis by professional traders and investors on Hacked.com. Register now and receive the first month for free. Click here.

Advertisement

Source link