BBVA completes export documents pilot using Wave's DLT
Spanish banking group BBVA has used blockchain technology to complete an export deal between companies in Spain and Mexico. The bank used a distributed ledger technology (DLT) system developed by technology firm Wave, which enables users to verify and authorise documents automatically along the supply chain much faster and with more accuracy than by using conventional procedures. The trial operation involved a genuine sale of 25 tons of frozen tuna, and the transaction time was cut from seven to 10 days to just two and a half hours.

BBVA, the Spanish banking group, in collaboration with Wave, a company which allows members of the supply-chain a direct exchange of documents in a decentralized environment conducted the first pilot that uses blockchain to automate the electronic submission of documents in an import-export transaction between Europe and Latin America.

Thanks to the Wave solution, which uses Distributed Ledger Technology (DLT) and blockchain, BBVA was able to reduce the time required to send, verify and authorize an international trade transaction, which normally takes from seven to ten days, to just 2.5 hours.

The pilot was run on an actual sale transaction between Mexico and Spain, in which Frime, a company of Barcelona, Spain, bought more than 25 tons of frozen tuna from Pinsa Congelados, of Mazatlan, México. The payment was made using a letter of credit – the most common payment system in international trade transactions. BBVA Spain issued the letter and BBVA Bancomer processed the payment.

The large volume of documentation required by a letter of credit entails a series of different processes that in most cases involve error-prone processes such as manual checks and sending physical documents, of which can make the process last up to two weeks.

The Wave system made it possible to make changes or corrections that arose from the moment the goods were loaded until their arrival at the destination. The pilot also included the electronic signature of documents, the simultaneous distribution of copies to all parties and the reception of the ownership of the documentation at each step along the way.

Wave’s electronic submission of documents represents a huge step forward in terms of cost savings and greater efficiency, makes the entire process transparent and reduces operational risk.

This project is part of BBVA’s commitment to digitize the financial sector and make it more efficient through the use of emerging technologies like DLT and blockchain. In addition to the pilot with Wave, BBVA has also conducted others for currency conversions and international transfers.

BBVA belongs to the leading consortiums working on developing platforms and proofs of concept related to blockchain, such as R3, Hyperledger, Enterprise Ethereum Alliance and Alastria.