BBVA and Porsche Holding Salzburg have closed the “first” acquisition term loan using blockchain technology.
The bank and the automotive distributor closed a €150 million term loan backing acquisitions in the retail distribution network in Europe and Asia.
BBVA says: “This is not only the first acquisition term loan ever arranged through blockchain technology, but Porsche Holding is also the first non-Spanish borrower using this technology for the negotiation and closing of a corporate loan. This pilot used the platform developed by BBVA based on distributed ledger technology (DLT).”
According to the bank, blockchain offers a better client experience by automating the negotiation process and minimising operational risks.
In its view, the speed of execution is essential to the success of acquisition finance transactions.
This latest development follows on from BBVA’s great interest in blockchain.
A recent example includes BBVA and Santander getting involved in the European Commission’s planned launch of the International Association for Trusted Blockchain Applications (IATBA) next year