Banking News

BBVA uses blockchain to negotiate Porsche loan

BBVA

Today it was announced that Porsche Holdings negotiated a €150 million term loan with BBVA using the Spanish Bank’s blockchain solution. The loan is for strategic acquisitions for Porsche’s auto distribution network. There are other blockchain loan platforms, but BBVA’s doesn’t just record the loan post-completion, it’s used during the negotiation process.

The aim is to speed up the process and make it more efficient. Additionally there’s full documentation tracking and negotiation transparency.

Frank Hoefnagels, Head of BBVA CIB in Germany, said: “This transaction is all about putting blockchain technology into meaningful practice in the interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution. To be on a common path with our longstanding partner Porsche Holding makes us equally proud”.

Dominik Paschinger, Branch Manager of Porsche Corporate Finance in Belgium, said: “With digitalization being an integral part of Porsche Holding’s Strategy 2025, the goal is to advance in all fields of activity. We think that the blockchain technology has great potential and are therefore very excited to being able to explore the technological capabilities together with BBVA”.

In February the luxury car maker announced it was experimenting with blockchain with Berlin startup Xain. This included locking and unlocking vehicles and enabling temporary access authorisations for the vehicle via an app. That could work well for something like valet parking.

BBVA has used its platform for several other types of loan deals with Spanish organizations. A month ago it arranged a syndicated loan deal for Spanish electricity grid, Red Electrica. Previous loans have included one for construction group ACS and another for energy company Repsol. The first loan was in April with consulting company Indra. BBVA has also experimented internally with tokens that employees can use for training.

The bank is collaborating with multiple blockchain consortia. It’s a member of the Hyperledger Governing Board and it’s a shareholder in enterprise software firm R3. Additionally, the company is a member of the Enterprise Ethereum Alliance and Spain’s Alastria.