The second largest Bank of Spain Banco Bilbao Vizcaya Argentaria (BBVA) has become the world’s first financial institution, used the blockchain technology to provide its lending facilities. A loan of EUR 75 million was issued to one of the corporate clients of the Bank, reports the Financial Times.
According to the publication, for the transaction by both parties, there were separate private blockchain, but later the transaction was registered in the public blockchain Ethereum using a system of smart contracts.
Executive Director BBVA Carlos Torres Vila expressed optimism regarding the use of the blockchain in the banking system, noting that technology has reduced the time the Treaty was concluded “with a few days to a few hours.”
“The blockchain has plenty of useful properties, especially when it comes to corporate relationships. The blockchain makes interaction effective, safe and transparent. Perfect us deal is another example of how innovative technology can be used in the field of financial services,” said Vila.
He also added that the Bank intends to “fully focus on the study of the potential of the blockchain for its use in providing the services.”
We will remind, in November of 2017 BBVA successfully launched a pilot version of blockchain solutions for the processing of commercial transactions between Europe and Latin America.