In a recent news release, Banco Bilbao Vizcaya Argentaria (BBVA) has announced that it has successfully closed a syndicated loan worth $150 million for Electrica, the operator of a Spanish National power grid. The loan was closed through an Ethereum Blockchain. As the loan amount was dispersed through blockchain, the payment took a lot less duration of time as compared to the former systems, stated BBVA.

The information on blocks was tamper-free and secure as each set of the transaction was stored in several blocks at a single time. The blockchain platform also enabled the law firms like Linklaters and Herbert Smith Freehills to gain access during the loan. The involved parties were able to access the data, make time-stamp related changes and found that the information was immutable.

Regarding this achievement, BBVA’s Head of Global Finance, Ricardo Laiseca also stated that implementing blockchain in finance sector can cut down internal costs to a larger volume. Furthermore, he said that the bank also aims to encourage other banks to leverage the benefits of the blockchain. Speaking further on the future steps of the bank he explained that BBVA has already five more syndicate loans to complete in future using blockchain.

Though syndicate loan is not a new term in the banking sector, the complexity and duration are much higher in the traditional systems as compared to a blockchain-led system. In the traditional method, various parties communicate with each other through fax, rather through the internet. Thus, BBVA Bank is hopeful that the example set by itself will encourage other big firms to step into this advanced technology very soon.