Spain’s second largest bank, BBVA, and Red Electrica Corporation have carried out a blockchain-based syndicated loan of €150 million.
The deal, granted by BBVA, BNP Paribas and MUFG, used the former’s proprietary platform, which is powered by distributed ledger technology.
“A global first, the transaction represents a major achievement within the slew of pilots that are being carried out in the market to explore potential applications of distributed ledger technologies. Although other companies have launched platforms that could enable this to happen, this is the first time a real life deal has actually been done,” says BBVA.
“The whole facility’s negotiation process was closed over the blockchain network, which allowed a significant expediation of the process while ensuring full documentation tracking and negotiation transparency. For us, this is purely about using innovation to deliver a better client experience, automating the process for ease and minimising operational risk because of the underlying principles of the blockchain.”
In September, Francisco Gonzalez, Chairman of BBVA, said that he was a big fan of cryptocurrencies and blockchain technology.
“Cryptocurrencies are perfect, but are used for bad purposes today, so be careful,” he warned. “Cryptocurrencies must be understood and can’t be in the corner where malpractices are taking place.”
Blockchain and DLTs, meanwhile, were “also perfect, they are big, big tools”.
“We’re in the middle of an incredible digital revolution and a new world order is in the making, both economically and socially…The legal architecture of the world today is incongruent with that new world order, so something must be done to spread the wealth of this revolution to everybody,” he continued.
Gonzalez noted that “we are living in the information society” where “everything is within reach of everybody”. He praised the big tech companies that “are changing everything … this is good, but we have to be careful with the ripple effects”.
In April, BBVA became the first international bank to issue an $87 million loan on the blockchain in April. And in July, it approved a new $117 million loan to civil engineering firm ACS Group.
George Town, Grand Cayman, 22nd November 2024, Chainwire
Las Vegas, US, 1st November 2024, Chainwire
From digital art to real-estate assets, NFTs have become a significant attraction for investors who…
Singapore, Singapore, 21st October 2024, Chainwire
HO CHI MINH, Vietnam, 17th October 2024, Chainwire
London, UK, 16th October 2024, Chainwire