BBVA, a major Spanish bank, completed a pilot to use the Ethereum blockchain for Red Electrica's $150 million syndicated loan. A syndicated loan is a loan in which a single borrower borrows from a group of entities, most frequently banks. In Red Electrica's syndicate, BBVA was joined by the Japanese bank Mitsubishi UFJ Financial Group and the French bank BNP Paribas. The process to issue a syndicated loan process is often time consuming and expensive. The use of a blockchain allows for firms to exchange information near real-time, thus reducing the process to issue a loan and the corresponding operational costs. Reportedly, BBVA plans to conduct additional pilots for syndicated loans on a blockchain. (Source: Financial Times)
Tether's CTO shared the update in a Tweet on Monday, adding that its commercial paper holdings are now below $50 million.