Spanish bank Banco Bilbao Vizcaya Argentaria SA or BBVA, signed a new corporate loan using blockchain technology with Spanish civil engineering company ACS Group after the success of its first pilots of a loan and a corporate credit facility in late April.
BBVA signed a 100-million-euro or $117 million, long-term bilateral corporate loan with ACS to be used for general financial needs.
With the negotiation process being digitized, it reduces the processing time from days to hours for negotiation and closing of the agreement conditions for the loan on BBVA's private blockchain network (Hyperledger).
BBVA, Spain's second largest bank, claims to have recently successfully carried out the first pilots in the world to issue corporate loans powered by blockchain technology. The bank partnered with Spanish tech consultancy firm Indra, and issued 75 million euros or $87 million in corporate loans through DLT and smart contracts.
Following that, BBVA also renewed a credit line worth 325 million euros or $380 million, involving a revolving credit facility, using DLT and smart contracts in a deal with Spanish energy firm Repsol SA.
BBVA is also developing different blockchain initiatives related to international payments, international trade, and foreign exchange transactions.
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