The loan relied on BBVA’s proprietary blockchain network. These three banks, along with two legal companies, used this distributed ledger technology from the start of negotiations, right up to the signing of the final contract. Information was timestamped and shared instantly over a secure network, with the final contract assigned a unique identifier on the public Ethereum blockchain, in order to ensure its immutability without compromising the privacy of the parties involved.
DLT will only work if the systems designed by each individual bank can also communicate with those platforms utilised by other financial institutions. Thus, banks will need to continue to work in tandem to ensure the benefits of DLT are not diluted by the development of separate platforms.
Earlier in 2018, Banco Santander launched On Pay FX, a payments app. It was the first time an international bank has harnessed the power of blockchain to facilitate online payment transfers.
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