The bank that granted the loan is the Spanish Banco Bilbao Vizcaya Argentaria BBVA and it is not the first time that it has granted loans using this method.
Indeed, it had recently used its blockchain platform to finalise another loan to Red Eléctrica and to extend a credit line to Repsol. In addition, it has already tested lending processes using both the blockchain of Ethereum and Ripple, in an attempt to be the first global bank to successfully complete blockchain-based corporate loans.
The loan was granted through the platform developed by BBVA itself and based on distributed ledger technology (DLT).
Porsche will use the funds received for strategic acquisitions in the retail distribution network in Europe and Asia.
The bank states that blockchain offers a better customer experience by automating the trading process and minimising operational risks, thanks to the inherent characteristics of the technology.
Since the speed of execution is essential to the success of financial acquisition transactions, the technology used for accounting processes in these cases is particularly relevant. In addition, blockchain also ensures traceability and immutability of data, making the documentation process more secure and transparent.
According to BBVA the use of blockchain for this loan has shown to what extent new technologies can make a leap in efficiency in the financial markets.
Frank Hoefnagels, head of BBVA 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, Director of the Porsche Corporate Finance subsidiary in Belgium, added:
“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“.