‘The Banker’, financial affairs publication owned by The Financial Times Ltd announced the winners in this year’s edition of “The Banker Tech Awards”. The award in the category related to Distributed Ledger Technologies and blockchain went to the Spanish bank BBVA.
BBVA makes use of both private and public blockchain platforms to improve efficiency and transparency in the process of loan negotiations with its corporate clients. Transparency and monitoring of the process are carried out through the use of Hyperledger. On the other hand, the use of Ethereum blockchain ensures contract terms perpetuation through public hash records.
“The project has changed the way corporate clients interact with BBVA, thanks to a process that increases transparency” states The Banker.
One of the prime causes BBVA proposal got ahead of others is the fact that it encourages clients to host their own blockchain nodes and that BBVA is developing a do-it-yourself platform for this type of transaction at the moment. It is also noted that the bank tested its platform with several different financial instruments, ranging from corporate loans and syndicated loans to structured bonds, with deals up to €1 billion.
In a separate statement Ricardo Laiseca, head of Global Innovation & Analytics at BBVA said “Blockchain is a useful technology because its features of real-time, traceability and transparency are instrumental to creating smart interactions and front-to-back automation. We believe blockchain technology is a long-term play, creating faster, easier and safer ways to share data and pieces of data modularly,”
The bank has already completed a number of pilot projects with such companies as Repsol, Porsche, Mapfre, and several others. It well worth noting that BBVA is one of the leaders in the use of blockchain platforms amongst the banks worldwide and was included in ‘Blockchain 50,’ list by Forbes magazine in April 2019, recognized for its use and development of the technology.