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BBVA, Repsol ink deal to develop blockchain-based financial solutions

Spanish banking giant BBVA has announced that it has signed an agreement with energy group Repsol to develop blockchain-based financial solutions.

As the first initiative under this alliance, the companies have renewed a credit line worth €325 million using blockchain technology. According to the official release, BBVA and Repsol have closed a revolving credit facility (RCF) which for the first time uses distributed ledger technology (DLT).

“Negotiation of the long-term credit line worth €325 million was completed using BBVA’s blockchain network, which reduced the process to a matter of hours rather than days in a fully transparent operation that allowed the tracking and approval of the documentation involved,” the release said.

The solution developed by BBVA and Repsol used different types of blockchain – the negotiation between the two companies and agreement of the conditions was developed using a private blockchain network (Hyperledger), while the signed contract was registered using the Ethereum test network (testnet) through a hash, or unique document identifier that guarantees its immutability.

Alicia Pertusa, Head of Strategy and Blockchain at BBVA, said the pilot kicks off an alliance to look into the potential of DLT in corporate finance.

“This operation is the fruit of BBVA’s pursuit of integrating innovative and disruptive financial products for corporate clients and to offer them the best solutions that meet their needs,” Pertusa explained.

BBVA is a member of leading global blockchain consortiums such as R3, Hyperledger, Enterprise Ethereum Alliance and Spain’s Alastria. Speaking at a seminar recently, BBVA CEO Carlos Torres Vila announced that the Group will begin testing the negotiation and contracting of syndicated loans using blockchain.

The bank recently unveiled the first corporate loan using blockchain technology in conjunction with the Spanish technology group Indra in a deal worth €75 million.

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