The onward march of blockchain technology took another major step after BBVA, Spain’s second-largest bank, negotiated a €150 mn ($171 mn) loan deal with Porsche – Europe’s largest car distributor – via the technology.
Not only is this the first acquisition loan, but it is also the first time BBVA has created a long-term, strategic loan deal with a non-Spanish company. In April this year, BBVA claimed to be the first bank in the world to use blockchain based-technology to disperse loans.
BBVA believes the implementation of blockchain-based technology helps automate the otherwise lengthy negotiation process, improve the client’s experience with faster transactions and reduce errors or risks.
In a post published on its website, the bank says the technology is the first step in progressing toward higher transparency. It has been predicted to revolutionize IR and Santander became the first company to use it for AGM voting earlier this year.
Frank Hoefnagels, head of BBVA corporate and investment banking, says in a statement: ‘This transaction is all about putting blockchain technology into meaningful practice in interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution.’
Dominik Paschinger, branch manager of Porsche Corporate Finance, adds: ‘With digitalization being an integral part of Porsche Holding’s strategy 2025, the goal is to advance in all fields of activity. We think the blockchain technology has great potential and are therefore very excited to be able to explore the technological capabilities together with BBVA.’
