BBVA - Banco Bilbao Vizcaya Argentaria SA

11/07/2018 | Press release | Distributed by Public on 11/07/2018 02:11

BBVA signs world-first blockchain-based syndicated loan arrangement with Red Eléctrica Corporación

All the benefits enabled by the blockchain technology translate into a better customer experience. Each step of the negotiation leading to the signing of the final agreement is recorded in the DLT network along with a user code and the timestamp that identifies the moment at which the event occurred. Thus, all nodes participating in the private blockchain network (Hyperledger) have access and share the same relevant information of the negotiation process, and thus can stay informed of the status thereof, guaranteeing the immutability of the information. Finally, once the contract is signed, a unique document identifier is recorded in Ethereum'spublic blockchain network (specifically, in its test network, 'testnet') to guarantee its immutability against third parties while safeguarding its confidentiality at all times.

According to Teresa Quirós, CFO of Red Eléctrica, 'this transaction is part of the our company's initiative to push digital transformation and innovation as levers for growth and efficiency, enabling us to address the challenges that the changing energy environment represents to our company'.

Ricardo Laiseca, Head of Global Finance at BBVA said, 'BBVA is simplifying the processes related to corporate financing and is betting on the use of new technologies, like blockchain, to digitize loan negotiations and contracting. We work with our corporate clients to be able to provide them with the most innovative financing solutions.'

'BBVA is simplifying the processes related to corporate financing and is betting on the use of new technologies'

BBVA is a leading force in the transformation of the financial sector. In wholesale banking, BBVA is innovating both in its financing products and in the digitization of its solutions to enhance its business and corporate customers' experience.

BBVA works with its corporate customers to offer, not only the most appropriate financial solutions, but also cutting edge innovation and technological capabilities, such as blockchain.

BBVA's wholesale banking unit is pioneering efforts to harness the advantages offered by the technology to increase the agility and transparency of its core products, such as corporate financing, and thus progress towards a Do It Yourself (or DIY) financing model for its business and corporate customers.