A bank in Spain recently concluded a pilot project whereby they issued a corporate loan using blockchain technology.
Bank uses blockchain to issue loan
Financial Times reported by the bank, BBVA issued a corporate loan of €75 million ($91 million) by means of two blockchain technologies. This makes BBVA the first global bank to issue a loan with the use of blockchain technology.
The blockchain technology apparently helped during the issuance process. This included negotiating the terms of the corporate loan as well as signing for it. The two blockchain technologies that were used during the pilot, included the public Ethereum blockchain as well as a private digital ledger.
Furthermore, BBVA told reporters that the blockchain technologies were extremely valuable to the process. It allowed the negotiation phase to be concluded in a shorter period of time. The borrower and the bank can negotiate the terms on the privately distributed ledger. Furthermore it updates the contract’s terms and conditions on both sides at the same time. Once these have been finalised and agreed upon, the contract can be signed and moved onto the Ethereum blockchain. Here it cannot be tampered with making for secure record keeping. BBVA said by using blockchain technology, the process that would usually take days, was concluded in a few hours.
In the near future, BBVA will be applying blockchain technology in a wide variety of its operations.
Alas BBVA is not the only bank looking at blockchain technology’s potential. Two other big European banks namely Credit Suisse and Dutch bank ING recently concluded a $30 million securities lending transaction on a blockchain application.
News from Binance
In other news, the Binance exchange recently announced that small balances can now be exchanged for Binance Coin. It can get quite irritating if you have an insufficient amount of a particular coin in your wallet. It does not even cover the transaction fees and you, therefore, have to either buy more of the coin to sell everything or just leave it in your wallet. Feels like such a waste, doesn’t it?
However, the process is quite simple, simply go to the ‘Funds’ section of your Binance account, click on ‘Balances’ and select ‘Convert to BNB.’
Now you can convert your ‘leftovers’ into Binance Coin and get back into the game!