BBVA Bank Writes $ 150 Million Syndicated Loan on Ethereum Blockchain
Spanish banking giant BBVA completes pilot project to record syndicated loan on 150 million dollars in blockchain. According to in a Financial Times article published on Wednesday, the bank issued this loan company Red Electrica, Spain’s grid operator.
A syndicated loan is a loan provided which a group of banks issues a loan to one borrower. In this case, together with BBVA, the lenders were also Japanese Mitsubishi UFJ Financial Group and French BNP Paribas.
Each stage of the loan disbursement process was recorded in a distributed ledger along with custom code and date stamps /time, so that of all participants in the process always had relevant information about the status of negotiations by loan. After a unique identifier was recorded on the Ethereum public blockchain of this document, themes the most was certified him “Authenticity” and provided a guarantee that it cannot be changed by third parties persons.
In the traditional syndicated loan process, banks exchange information at help faxes that do not only slows down the process, but also makes it dear. Blockchain is performing here means for exchange information in near real time, reducing the process of issuing a loan from a couple of weeks to a day or two. Besides Togo, is he allows you to reduce manual work, which also reduces operating costs.