Porsche Secures $170 Million Loan Using Blockchain Platform

by | Dec 25, 2018 | Blockchain, Cryptocurrency News

Porsche | Blockchain | Blockchain Loan

Porsche, the German carmaker, employs blockchain platform to procure a $170 million loan from Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA). Closed last week, the loan is to support strategic acquisitions in the retail distribution network in Europe and Asia.

Negotiated and closed by BBVA using distributed ledger technology (DLT), the Porsche’s blockchain loan has made the company the first non-Spanish borrower to secure a long-term, strategic loan deal from BBVA. A pilot project for BBVA, the blockchain platform has been used to arrange, negotiate and successfully disburse the acquisition term loan.

Branch Manager of Porsche Corporate Finance, Dominik Paschinger, commented:

“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.”

Blockchain And Corporate Loans

Recently, another German carmaker, BMW’s financial services arm teamed up with a blockchain company in order to streamline its corporate lending services.

The technology aids in digitalizing the whole financial processes, marginally reducing the time frame for negotiations and closing of such loans. Moreover, multiple participants can have simultaneous access to the constantly updated digital ledger.  The ledger cannot be altered adding a layer of transparency and traceability to the negotiation process along with the agreed terms of the loan.

BBVA stated that the distributed ledgers are one of the key points for the success of acquisition transactions, as it provides speedy execution while reducing the operational risks by making the documentation process safer and transparent. Both the bank and the client are profited by the increased efficiency and reduced costs.

Several Spanish organizations have already acquired other types of loan deals from BBVA, such as electrical grid operator Red Eléctrica de España (REE) and engineering giant ACS Group. The Bank has been a supporter and promoter of upcoming technologies and has invested in a number of blockchain-based solutions.

Read more: Most Of The World Can Now Use Bitcoin Without The Internet, Thanks To Blockstream Satellite

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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