Itau Bank Issues Syndicated Loan On Blockchain
A Brazilian Itau bank, one of the leading ones in Latin America, has entered into an agreement with a British Standard Chartered to apply a decentralized platform in issuing syndicated loans, Cointelegraph reports citing the official press release.
Both banking institutions provide services at the global level. They held a successful proof of concept (PoC) for the platform based on the Corda blockchain created by the R3 startup from New York.
The partners did not stop there and, with the participation of the American corporation Wells Fargo, issued a $100 million loan to test the platform. In that experiment, all the credit terms were agreed, the contract was tested in accordance with the established standards and was signed by both parties.
Blockchain has improved and accelerated communication between banks, because experts usually write up to 2000 emails to coordinate such a deal, Ricardo Nuno, the chief of the Itau treasury department, said to Reuters. Even though it was the experiment and the funds were not transferred, the platform will allow it to be done over time, the bank official added.
In turn, Germana Cruz, who is responsible for the development of Latin American financial institutions in Standard Chartered, stated that the experiment might be continued in other countries of this region.
As previously reported, the Spanish bank BBVA, together with its partners, issued the first syndicated loan on blockchain.