Porsche Holdings has finalized a USD 170 million term loan with Spanish banking giant, Banco-Bilbao Vizcaya Argentina (BBVA), making Porsche the first non-Spanish company to receive a loan from BBVA this way.

Blockchain-backed loan

According to a report made by Innovation Enterprise, Porsche Holdings, one of the world’s largest vehicle distributors and Europe’s largest has completed the loan using BBVA’s distributed ledger technology (DLT) system. The loan was issued to facilitate “strategic acquisitions in the in the retail distribution network in Europe and Asia”.

Suggestive of Porsche’s position in the future of blockchain, Dominik Paschinger, branch manager of Porsche Corporate finance in Belgium said: “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 [sic] able to explore the technological capabilities together with BBVA.”

Last month, the BBVA piloted the platform with Red Electrica, Spain’s foremost national grid and electricity distribution firm; the pilot featured a syndicated loan which transacted USD 150 million across the BBVA blockchain platform.

Advancing blockchain

With regard to the Porsche loan, a statement from the BBVA writes: “The use of blockchain for the arrangement of this facility has demonstrated the extent to which new technologies can provide a leap in efficiency in financial markets.”

Naturally, BBVA was bullish on the tech and is backing it due to the hallmark traits of blockchain technology and then some, namely traceability, immutability, minimizing operational risk and the automation of the negotiation process. The bank describes the need for DLT platforms in financial deals due to the speed of execution; the bank values this as an essential for acquisition finance transactions.

Head of BBVA CIB in Germany, Frank Hoefnagels said: “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. To be on a common path with our longstanding partner Porsche Holding makes us equally proud.”

Blockchain automotive

The news arrives shortly after computing behemoth IBM had published the results of a survey that gauged the sentiments toward blockchain within the automotive industry. After receiving responses from 1,314 automotive executives, the study found that a majority of respondents saw the tech being a disruptor within the next three years.

It also established a category of respondents named “Auto Pioneers”. To qualify for this title, survey participants need to “report familiarity” with their respective businesses blockchain strategy, and secondly, have confirmed that their companies are either experimenting, piloting or implementing blockchain technologies. These pioneers are reportedly “investing aggressively” into blockchain.

This post is credited to bitcoinnews

Brazil’s largest private bank has partnered with United Kingdom bank Standard Chartered to create a blockchain-based platform for small loans, according to a press release published by Itau Tuesday, Dec. 4.

Itau Unibanco, also a major Latin American banking group, and Standard Chartered both offer international banking services. The two entities have successfully conducted a proof-of-concept (PoC) for the mentioned platform, based on Corda Connect developed by New York-based blockchain startup R3.

Moreover, Itau and Standard Chartered, joined by United States multinational financial services company Wells Fargo, have issued a club loan of $100 million to test the platform. According to the release, the points of trial contract were effectively negotiated during the experiment, and the document was then checked for compliance with the conditions set and finally signed by both parties.

Ricardo Nuno, the head of treasury department at Itau, said that blockchain technology improved the communication between the banks, which is normally comprised of 2,000 words for a similar matter, Reuters writes.

Nuno further added that the money was not actually transferred, as it was a trial, but that the platform will definitely allow for that in the future.

Germana Cruz, head of financial institutions for Latin America at Standard Chartered, told Reuters that the company might use the results of the trial to issue loans on blockchain in the region.

Global banking groups have previously used blockchain to increase the speed of syndicate loan issuance, along with cutting operational costs. In 2017, seven major international banks —  including BNP Paribas, BNY Mellon, HSBC, and ING — partnered to conduct major tests in the blockchain technology-based marketplace for syndicated loans, called Fusion LenderComm and supported by R3.

Another banking giant, Spain-based Banco Bilbao Vizcaya Argentaria (BBVA), carried out a blockchain-based syndicated loan of $150 million in October. French banking group BNP Paribas and Japan’s bank holding Mitsubishi UFJ Financial Group (MUFG) also participated in the trial.

Cointelegraph has also reported that U.K.-based bank Natwest was set to launch a similar blockchain platform based on R3 Corda technology in the syndicated loans market in November.

This post is credited to cointelegraph

BMW Group now working with Singapore’s blockchain team SUC (Singapore) to streamline the car buying experience, including streamlining the car buying processes. SUC founder Jason wrote on Facebook last week: “SUC announced a partnership with BMW Group’s Financial Services to simplify its customer car and loan experience as part of the 2018 BMW Collaborative Experiment.”

The Singapore-based blockchain company believes that traditional loaning processes are cumbersome. Some of its problems includes putting consumer data at risk when trying to accurately rate borrowers. Jason said SUC blockchain mobile application will help BMW customers protect their personal data on local devices and apply for loans. Jason also said that his company is committed to seamless car buying process (for car buyers), blockchain technology does not need to involve steep learning curves.

The first BMW Financial Services Collaboration Lab worked with six start-ups to transform the automotive industry through a 10-week envisioning process with industry experts from the automotive manufacturer Hilliard’s Ohio office.

Digital currency

BMW is also looking to breakthrough payment solutions. Their statement mentions on blockchain project SUC, which is developing a digital wallet that, if adopted, may be extended nationwide to the automotive distribution industry. According to a company statement, “in-store and online customers can pay with a simple two-dimensional scan”. The product runs on a smart contract system that effectively manages counterparty risk and protects both buyers and sellers. “

If the cooperation is successful, this should be good news for car buyers. The blockchain initiative for German automakers is a bold move aimed at distinguishing itself from other automakers. In addition, blockchain technology is convinced that the brand positions itself as a high-end manufacturer of the “ultimate driving machine”. The experience of car purchases has been known for long-term delays, dealers’ tricks and unethical behaviors, which have left many consumers uninterested. Blockchain is considered a subversive way of streamlining and digitizing ancient manual processes.

Therefore, BMW partnered with blockchain company SUC to launch a loan experience to streamline the car dealership process.

Simplify car dealership process

Through its “SUC partnership, BMW Financial Services is expected to launch a streamlined and easy loan experience to improve customer’s car buying process. Ian Smith, CEO of the Financial Services Division of BMW Group Asia, said BMW is “researching blocks” on how the chain ledger would supports the current shift in data warehousing, payment, and customer information tracking. “Ultimately, our goal is to enable BMW to automate large amounts of processing and improve information tracking and security.”

Jason discussed working with startups to drive new thinking, exploring new technologies and developing groundbreaking solutions. Bloom and five other startups will use automotive and finance professionals to work for 10 weeks at BMW’s office in Hilliard, Ohio.

Other partners from the same project including carLABS, which uses a cognitive, conversational AI-driven platform to automate automotive vertical sales and marketing. Another startup, Omniscience, is building underwriting and capital modeling solutions as part of an innovative analytics platform.

This post is credited to coins300