Blockchain may finally be moving out of the lab and into the marketplace.
Banco Bilbao Vizcaya Argentaria SA, Spain’s No. 2 lender, has executed its first cross-border payments through a system based on the software that supports bitcoin, the company announced Friday. Using a program built by Ripple, a San Francisco firm, BBVA has transferred about 50 euro-denominated payments to Mexico from Spain in seconds. Such transactions normally take up to four days to clear, the bank said.
BBVA plans to use Ripple’s distributed ledger offering to provide corporate customers a quicker and cheaper way to pay overseas suppliers and execute other international transactions, said Alicia Pertusa, head of the lender’s Digital Transformation in Investment Banking unit. Processing payments on Ripple costs, on average, 81 percent less than the correspondent banking network that’s been used to send payments around the world for decades, according to the company.