Financial Times reported on Thursday that the bank’s latest development of the technology is applied to the whole issuance process, from the negotiation of terms to signing the corporate loans. The trial system is based on the public Ethereum network and a private distributed ledger.
According to the report, the pilot necessitates both the borrower and the bank to commence terms negotiation on a privately held blockchain that updates for both sides at the same time the progress of the transaction.
Due to these implementations, BBVA states that the system can decrease the time needed for the negotiation phase from “days to hours”. After this stage, the finalized contracts are relocated onto the Ethereum blockchain to be recorded without any possibility of future modification, wrote the report.
The latest innovation increases BBVA’s current developments in using blockchain technology across an array of its business operations.
In the recent past, the bank has already conducted tests with blockchain solutions for electronic international transactions between Europe and Latin America. And in October of 2017, it switched to use distributed ledger technology to coordinate the foreign exchange with itself and its Mexican subsidiary.
But BBVA is not the only reputable financial establishment that experimented with the technology to determine its potential for updating loans transactions.
Just recently, another two European banking institutes – Credit Suisse and Dutch bank ING – also declared the finalization of a live lending transaction of $30 million securities based on a blockchain application developed in collaboration with enterprise blockchain group R3.