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BBVA Leads The Charge With Fintech, Blockchain Technology

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BBVA Leads The Charge With Fintech, Blockchain Technology

Over the past few years, Spanish banking giant BBVA has led the charge in the financial services industry in its embrace of cutting-edge technology. It’s adoption of agile methodology allowed the bank to be more responsive specifically in advances with blockchain technology. 

In April, BBVA completed the first international corporate loan transaction using the blockchain. The initiative was in line with the organization’s efforts to streamline business processes and incorporate disruptive technology into its client solutions. 

The deal was historic for its complete use of blockchain technology. From negotiation to documentation, both a private hyperledger solution and Ethereum’s public blockchain were used to ensure the process would be as quick and transparent as possible. The distributed ledger technology used ensured traceability in every stage of the transaction and reduced its speed from several days to just a few hours.   

Regarding the transaction, BBVA’s Global Head of Customer Solutions, Derek White, said in an interview, “BBVA’s digital transformation continues to gather pace and reach into new areas, and this is a prime example of where disruptive technology can add real value to business processes.”

Since the historic loan transaction in April, BBVA has taken further steps to advance the use of the blockchain in financial services. After successfully transferring a revolving credit facility of $375 million using its blockchain network, BBVA signed an agreement to develop blockchain-based corporate financial solutions for Spanish energy firm Repsol. 

“Blockchain is a disruptive technology that is here to stay, and the agreement with BBVA augments our strategy to drive digitalization in all our areas of activity,” said Nuria Avalos, Director of Blockchain and Digital Experimentation at Repsol, in a statement.

This agreement marks a historic moment for both financial services and the blockchain. Two of Europe’s largest corporations have embraced the technology due to its security, transparency and speed. The development has since inspired other organization’s to follow suit, including the World Bank, who recently launched a blockchain-only bond.

These developments reflect a promising future for the blockchain, taking light away from recent controversy directed toward the technology due to its application in cryptocurrencies. 
 

Posted-In: BlockchainFintech General

 

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