Banco Bilbao Vizcaya Argentaria (BBVA), Spain's second largest bank has negotiated a €150 million (equivalent to $170 million) loan deal with Europe's largest car distributor Porsche Holdings through Blockchain technology.

The bank used its self-developed and constantly evolving platform, based on Distribution Ledger Technology (DLT), much like a Hyperledger, to disburse this long term acquisition loan. Not only is this the first acquisition loan, but this is also the first time the BBVA has created a long-term, strategic loan deal with a non-Spanish company.

In April this year, BBVA claimed to be the first bank in the world to use blockchain based technology to disperse loans. Previous borrowers of this blockchain loan include the Red Eléctrica de España (REE), part state-owned Spanish national electrical grid operator worth $150 million, a long term corporate loan with Spanish engineering giant ACS as well as multiple Spanish corporates lined up to utilize the revolutionary lending mechanism.

The BBVA believes that the implementation of blockchain based technology helps automate the otherwise lengthy negotiation process, improve the client's experience with faster transactions and reduced errors or risks. On an official post published on their website, the bank stated that the technology is the first step in progressing towards higher transparency, along with a Do It Yourself (DIY) approach to financial lending corporate banking.

Frank Hoefnagels, Head of BBVA Corporate and Investment Banking stated: "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."

Branch Manager of Porsche Corporate Finance, Dominik Paschinger, agreed with the above  statement and 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."

Future developments in crypto digitized financial banking also include the United Kingdom's NatWest bank implementing the blockchain based lending platform in association with R3 Corda and Finastra.