BBVA uses Ethereum blockchain for loans to power grid operators BBVA, the Spanish bank giant, has completed a pilot project that has placed a syndicated loan of over $ 150 million into the blockchain. According to a Financial Times report, the bank has arranged the loan for Spanish electric utility Red Electrica ….
BBVA uses Ethereum Blockchain for loans to grid operators
The Spanish bank giant BBVA has completed a pilot project, which put a syndicated loan of $ 150 million in the blockchain. According to a Financial Times report, the bank has arranged the loan for Spanish electric utility Red Electrica.
A syndicated loan is a loan in which a group of banks jointly provide loans to a single borrower.
In this case, BBVA’s co-financiers were Japanese Mitsubishi UFJ Financial Group and French BNP Paribas.
The data for the loan was timestamped at each stage of the process. The loan agreement was finally signed between the three banks and recorded in the Ethereum Blockchain, which maintains its “authenticity”.
In a traditional syndicated loan process, banks rely on faxes to exchange complex information, which delays the process and is expensive. Blockchain can help banks exchange information in near real-time, reducing the loan process from a few weeks to a day or two.
BBVA is planning further blockchain syndicated loan pilot projects. In April, the bank has already issued a $ 91 million corporate loan in a pilot project. Both a private ledger and the public Ethereum Blockchain were used.
For the latest cryptocurrency news, join our Telegram!
Image by Shutterstock
TheBitcoinNews.com – Bitcoin News source since 2012
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
