The second largest bank in Spain, Banco Bilbao Vizcaya Argentaria (BBVA), became the world's first financial institution to use distributed ledger technology to provide its lending services. A loan of 75 million euros was issued to one of the bank's corporate clients, the Coindesk reported.
Both sides used a separate private blockchain, but later the transaction was registered in the public blockchain Ethereum using a system of smart contracts.
Executive Director of BBVA Carlos Torres Vila expressed optimism about the use of blockchain in banking systems, noting that the technology allowed to shorten the time of the contract "from several days to several hours."
He also added that the bank intends to "fully focus on studying the potential of the detachment for its use in providing its services."
In November 2017, BBVA successfully launched a pilot version of the blockchain-based solution for the processing of trade transactions between Europe and Latin America.