BBVA will use blockchain technology to integrate financial services

Recently the BBVA bank has announced an alliance with Ant Group, a subsidiary group of the e-commerce giant Alibaba, to collaborate with the integration of financial services through its Trusple platform, based on technology blockchain.

The Trusple network has, among other objectives, to accelerate digital transformation as well as facilitate the financing of operations that are related to international trade; and specifically in a target focused on medium and small companies.

The alliance is very useful, since it will allow the bank to integrate cross-border payment services, while allowing the administration of financing processes thanks to Trusple; thus enjoying all the benefits associated with blockchain technology, such as security, transparency and traceability.

This is not the first time that the BBVA bank is interested in using blockchain technology within its operations. In fact, in December 2020 they already announced that they would launch a cryptocurrency trading and custody service in Switzerland. Through a statement, BBVA announced that it would begin a series of tests on its first commercial service with Bitcoin (BTC), which will initially only be available through its subsidiary in Switzerland. However, this is not his first approach to the cryptographic system.

Services available in Mexico and Spain

Financing services will be offered by BBVA Spain and BBVA Mexico at first; and in this way importers from both countries who import merchandise from China will be able to carry out payment for their operations within the Trusple network.

The system works through smart contracts (smart contracts), which are responsible for automatically executing transactions when a series of parameters are met that are previously established in the contract by the importer and exporter.

In this sense, the head of Commercial Banking of Mexico, Alejandro Cárdenas, spoke about this new project: “Trusple is designed to solve the problems that SMEs and financial institutions face when engaging in cross-border trade. “BBVA’s previous research on blockchain technology will allow us to incorporate new services on this platform quite easily.”

In addition, Pablo Lopez, Director of International Solutions at BBVA Spain mentioned: “We hope that next year we can help any Spanish or Mexican SME that already makes purchases from Chinese suppliers through this portal with a much simpler system, simple and transparent».

Alliance for digital transformation

Trusple was launched in September 2020 with the aim of addressing international trade problems. Import and export operations are usually complex; especially when they are based on paper documentation, in which the goods can take months to be delivered and payments to be made.

For this reason, thanks to Trusple, we seek to integrate distributors and suppliers into a single access point to real time financing. Its offer is simple for any company, regardless of its level of digitalization. Through a system with a reliable data record and a single point of access to all tools, addressing cross-border trade and financing needs.

This initiative will be of great help to BBVA, the second largest bank in Spain. This is clear about the advantages of betting on blockchain technology; and that is why in the future there may be different areas in which its use is resorted to.