There is a deal coming to fruition between the Banco Bilbao Vizcaya Argentaria (BBVA) and Porsche Holdings which is based upon the distributed ledger platform of BBVA’s.
This is for a term loan worth $170m for Porsche Holdings, which is the largest distributor of cars in Europe. BBVA is a bank in Spain and they are using blockchain technology to process this loan.
This was done through the DLT platform at BBVA and it will allow the car company to make strategic acquisition throughout Asia and Europe. It will also be the very first time that a borrower from outside of Spain has utilized this new platform in order to negotiate and close out a corporate loan.
Porsche is praising this new form of technology, noting that, “With digitalization being an integral part of Porsche Holding’s Strategy 2025, the goal is to advance in all fields of activity. We think that the blockchain technology has great potential and are therefore very excited about being able to explore the technological capabilities together with BBVA.”
As part of this platform, BBVA is able to accurately trace transactions and make the process of negotiating automated and lower operational risk as much as possible. It is going allow for deals to be executed much quicker which is very important when it comes to transactions in the finance space.
This deal is good or the relationship of the two parties, as it adds a lot more trust to proceedings and also provides benefits to both parties.
It shows the extent to which the financial markets stand to benefit from implementing new forms of technology such as blockchain. It shows that meaningful practices can be achieved and that the customer experience can drastically be improved in a simple manner.
It will be interesting to watch what other companies in the near future start to use systems such as the one employed by BBVA in this deal.