BBVA and Repsol partner to develop blockchain solutions
BBVA Bank and energy firm Repsol have agreed a deal to develop blockchain solutions.
The Spanish firms are collaborating to create blockchain-based corporate finance solutions using various technology sets, ranging from Hyperledger to Ethereum.
As an early breakthrough in the partnership, BBVA has been able to transfer a credit facility of €325m ($375m) via its blockchain network.
“Repsol wants to actively take part in collaborative environments. Blockchain is a disruptive technology that is here to stay and the agreement with BBVA advances our strategy of driving digitisation in all areas of our activity,” said Nuria Ávalos, head of blockchain and digital experimentation at Repsol.
BBVA claims to have become the first bank to create a credit facility using blockchain.
“This operation is the fruit of BBVA’s pursuit of integrating innovative and disruptive financial products for corporate clients and to offer them the best solutions that meet their needs,” said Alicia Pertusa, head of blockchain at BBVA.
The Spanish banking group said blockchain had dramatically cut the time normally required to issue such a facility, including approval and all the necessary documentation that goes with it.
Blockchain meant it could complete the whole operation in a matter of hours rather than a few days.
BBVA hopes to build on its earlier progress in blockchain, which has already seen it create a platform to transact the entire corporate loan process through the technology.
In April, BBVA became the first ever bank to issue a corporate loan using blockchain, from negotiating terms to signing the loan. The deal was worth €75m ($86m).
The bank plans to extend the scope of its blockchain loan capability by applying it to the process for creating syndicated loans. This is more complicated than a straightforward loan as multiple firms are involved.