On December 14, Banco Bilbao Vizcaya Argentaria reports that this dollar loan deal between Porsche Holding Salzburg and the bank will help the Volkswagen subsidiary. Moreover, this subsidiary can now join strategic acquisitions holding in Europe along with Asia retail distribution markets.
The news report also states this acquisition loan is a first-ever loan facility by BBVA which incorporates a non-Spanish borrower over blockchain. However, BBVA has been working on a nascent blockchain tech facilitating loans. Till date, the bank is successful in managing to settle blockchain loans with various corporate clients in Spain.
Back in November, BBVA organizes a syndicating loan worth around $150 million for Red Eléctrica de España (REE). Additionally, this form is a national grid operator which partly comes under the state ownership.
The reports by Finextra say that the deal between bank and Porsche Holdings uses similar blockchain technology which BBVA uses for all other transactions. Also, in their recent loan deal, the bank uses both public as well as private blockchain.
BBVA jointly facilitates BNP Paribas, MUFG at Japan along with an REE loan deal. The deals uses a public Ethereum blockchain and private Hyperledger network. Also, the latter records a unique document identifier (Document ID) specifically for a loan contract.
Frank Hoefnagels is the head of commercial and institutional banking at BBVA in Germany. He says that blockchain is extremely crucial when the bank tries to accomplish finance transaction acquisition for such operations, speed is a must. He also adds,
The Porsche Holdings transaction was primarily geared towards putting blockchain technology into meaningful practice, as the bank interacts with its customers.
The main goal is to enhance clients’ experience while streamlining processes and improving the speed of execution. The bank also incorporates the use of technology as it helps to guarantee traceability. Moreover, blockchain immutability helps the documentation procedure at the time of transactions. Additionally, it maintains the transparency along with extensive security.
This banking company is working on various inroads within blockchain. It follows this tech after becoming the first successful bank to issue a loan using blockchain.