Banco Bilbao Vizcaya Argentaria (BBVA), a large Spanish bank, issued a $150 million syndicated loan to the local management company Red Electrica and recorded the transaction data on the blockchain.
In particular, the user code and time stamps at each stage of the loan process were included in the distributed registry. Thus, all participants in the transaction – the Japanese Mitsubishi UFJ Financial Group and the French BNP Paribas also acted as creditors – got access to the relevant information on the status of loan negotiations.
Thanks to the blockchain, participants in the syndicated loan were able to abandon the costly exchange of information via fax and shorten the loan issuance period to a couple of days. BBVA plans to implement several more pilot projects for issuing syndicated Blockchain loans.
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