As blockchain technology becomes more popular, major banks are looking in crypto and trying to find a way to use it to their advantage. Such banks as Barclays, HSBC and Banco Bilbao Vizcaya Argentaria (BBVA) are all taking a shot at blockchain technologies.
Possibly one of the largest banks in the world, Barclays is dipping its toes into the blockchain pool. Recently the UK bank filed two crypto patents. One is to do with crypto transfers, the patent abstract describes it as a: “method and system for transferring digital currency from a payer to recipient comprising receiving an identifier of data describing the first entity,” while the other focuses on recording data via blockchain technology, a “method and system for recording data describing a first entity, the data endorsed by a second entity comprising the second entity validating data describing the first entity, wherein an identifier is associated with the data, the identifier being generated from a public key of the first entity.”
HSBC’s Josh Bottomley shared that the company is “cautiously looking into” crypto. The other day HSBC announced that they will be part of the joint launch of a blockchain trading platform in Hong Kong. The government-led platform will be an attempt effort of a number of banks to rethink the trade finance sector by introducing distributed ledger technology. Nevertheless, Bottomley claimed that “HSBC does not trade cryptocurrencies nor do we process payments denominated in virtual or cryptocurrencies.”
In an official statement BBVA posted to its website, they shared that a “new blockchain-based corporate loan” with the civil engineering firm ACS, for $117 million has been signed. This contract will allow both sides access to the contractual process, due to its transparent nature. This step, taken by the bank, is intended to innovate financing processes.
WHY IS THIS IMPORTANT?
- By showing their interest in cryptocurrencies and blockchain technologies, the major banks are also shifting the attention of the population to these fields making them more mainstream.
- More people will be using crypto, therefore the technology will be more accessible for the masses.