Spanish banking giant BBVA has announced that it has successfully completed the first global corporate loan transaction using blockchain technology.

The pilot involved closing of a €75 million loan using a blockchain solution developed by BBVA. It addressed the complete process – from negotiation of the deal to the signing of the loan.

The project was carried out in collaboration with global technology and consulting firm Indra. Through its digital transformation business unit ‘Minsait,’ Indra has developed different projects focusing on the implementation of blockchain-based products and solutions across a number of industries.

“This pilot served as an opportunity to take part in the first corporate loan operation based on blockchain technology in the world. The operation strengthens the position of BBVA and Indra as leaders in the practical application of blockchain technologies.” said Borja Ochoa, Director of Financial Services at Indra.

The negotiation process and completion of conditions between BBVA and Indra was developed on an internal solution built on Hyperledger. Once the contract terms were agreed, they used Ethereum’s public blockchain (testnet) to register the “hash” or unique identifier related to the transaction’s documentation.

By digitizing the negotiation process, the solution improved the management time, reducing it from days to hours. In addition, both the parties were able to independently consult the status of the transaction at every stage.

“BBVA’s digital transformation continues to gather pace and reach into new areas, and this is a prime example of where disruptive technology can add real value to business processes. The use of blockchain in this transaction has greatly increased transparency and speed, while equally improving efficiency – it’s a win win for both us and Indra,” BBVA’s Global Head of Customer Solutions, Derek White, said.

BBVA has been spearheading a number of blockchain initiatives in the past couple of months. In April 2017, it completed the first real-time cross-border money transfer using Ripple blockchain technology between Spain and Mexico. In October, it launched a blockchain pilot for foreign exchange transactions. The following month, it conducted a blockchain-based international trade transaction between Europe and Latin America.