Major Spanish banking group BBVA and Spanish energy company Repsol have signed an agreement to develop blockchain-based solutions for corporate banking, according to an announcement published June 20.
The product by BBVA and Repsol was developed using multiple different blockchain technologies, namely Hyperledger and the Ethereum test network. Nuria Ávalos, the head of Blockchain and Digital Experimentation at Repsol, commented on the collaboration:
“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 digitization in all areas of our activity.”
The agreement reportedly is part of BBVA’s larger recent strategy of applying blockchain technology in corporate banking.
The latest solution is reportedly an evolution of the platform designed by BBVA for conducting the entire loan process using blockchain, from negotiation of terms to signing. In April, BBVA became the first global bank to issue a corporate loan, worth €75 mln ($86 mln), using distributed ledger technology (DLT), of which blockchain is one type. The move reportedly reduced processing time from days to a matter of hour.
Yesterday, BBVA’s CEO, Carlos Torres, said that blockchain is “not mature,” citing “volatility of underlying currencies” and possible compatibility issues with tax authorities and financial regulators among major issues to be addressed. However, he added that the advantages of blockchain are so important to the company’s business, that “when it is mature and regulators are ready,” BBVA wants to have the tools necessary to apply the technology to relevant use cases.