BBVA is a Spanish bank and ever since it launched its blockchain platform for loans, it has always dealt with local clients. However, this time, the bank took a major leap forward and assisted Porsche Holding in loan collection. Reportedly, the company got more than $170 million through the platform.
BBVA at a glance
BBVA is a reputable bank and therefore, the blockchain loan figures are in hundreds of millions. It made two of its most noticeable deals with REE and ACS. Hold your breaths before reading any further as BBVA loaned Red Electrica de España $150 million last month. Talking about ACS, well they also managed to secure a whopping $113 million. It is pretty evident that the clients and the bank both seem to trust their new blockchain platform for loan agreements.
BBVA is not the sole loan provider in such deals. There are various parties involved in almost all transactions. For instance, the REE loan was gathered from BNP, MUFG, two advisory firms, and BBVA.
They are using a combination of Hyperledger and Ethereum to serve the purpose. BBVA made a very confident statement in April, claiming that it had become the first bank to conduct an entire loan reimbursement through blockchain.
Frank Hoefnagels, Country Executive, Head of Corporate & Investment Banking Germany, Austria, Switzerland at BBVA, stated that the recent loan issuance for Porsche was a great example of how great the technology is. Moreover, it also gave them a great deal of trust in dealing with International clients. He also made it clear that the aim of this financial activity was to enhance user experience. Hopefully, they managed to offer it by bringing efficiency and simplicity in the process.
It is worth noticing that the use of blockchain for banking purposes is increasing at an incredible pace. What’s more exciting is that banks are trying to test new blockchains for varying use cases. For instance, NatWest announced that it would be using R3 Corda for its activities with financial partners.