Major global financial institutions tested the distributed ledger technology for storing loan information.

The Spanish bank BBVA became the first global creditor, which implemented the blockchain technology in corporate lending. BBVA said that all actions, from negotiating terms to signing the contract, when issuing a corporate loan of €75 million, were recorded in a distributed ledger, access to which was available to both the bank and the borrower.

Blockchain allowed to reduce the time required for the process of issuing a loan, from a few days to a few hours, BBVA told.

"Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, security," said Carlos Torres Vila, BBVA chief executive.

The pilot was completed in cooperation with the Spanish telecom company Indra, which, according to her own description, is “at the vanguard” for blockchain applications.

Apart from BBVA, the French bank Natixis took part in the testing of the blockchain solution for syndicated loans. Natixis ranks 1st bookrunner for syndicated real estate finance loans in Europe, Africa and the Middle East in 2017.

The Fusion LenderComm solution, tested by Natixis, was developed by Finastra, which also develops software for SWIFT. This week Finastra announced the launch of this solution for commercial use.

Fusion LenderComm was built on the Corda platform from R3 consortium. It is designed to streamline information exchange between agent banks and lenders, driving transparency and efficiency in the syndicated loan market. This is the first project for capital markets of this scale, launched on a blockchain platform.

“The successful completion of the Fusion LenderComm pilot – which included some of the leading syndicated lenders in the world – demonstrates strong momentum towards gaining critical mass for a global marketplace for syndicated lending and loan trading,” said Simon Paris, Deputy CEO at Finastra.