One of Ethereum’s testnets played a critical role in a successful loan transfer completed by the Spanish multinational banking group BBVA. The pilot project enabled a loan to be transacted from negotiation to signing using blockchain technology.
BBVA[1], Spain's second-largest bank, completed a global corporate loan transaction to employ blockchain technology from the start of a deal negotiation to the conclusion of signing.
Successful closure of a transacted €75 million corporate loan was reached using a tailored distributed ledger technology (DLT) solution, partially involving Ethereum.
BBVA's official announcement[2] recognizes that corporate loan agreements can benefit from DLT. They also point out how this pilot project, part of BBVA Group's "wider digital transformation strategy," was particularly unique due to a DLT configuration that used an "internal solution built on private blockchain technology (Hyperledger)," before employing an Ethereum testnet to "register the hash or unique identifier related to the transaction's documentation."
The aim of the pilot initiative, which partnered BBVA with Spanish telecom firm and self-described blockchain "vanguard" Indra[3], was to trial DLT for the express purpose of increasing transparency. "The use of blockchain in this transaction has greatly increased transparency and speed, while equally improving efficiency," said Derek White, BBVA's global head of customer solutions. "It's a win-win for both us and Indra."
BBVA will give its first-quarter earnings report tomorrow and is known to be developing blockchain-based solutions for foreign exchange, international payments, and broader international trade applications.
BBVA and Indra are both participants in emerging consortias' mobilization around the creation of international standards, namely, the Enterprise Ethereum Alliance[4], R3, Hyperledger, and Spain's own Alastria[5].
Jordan Daniell is a full-time staff writer for ETHNews with a passionate interest in techno-social developments and cultural evolution.
