The Kutxabank Group’s securities company, Norbolsa has successfully carried out the first placements of promissory notes for the companies Vidrala and Sidenor with blockchain technology.
The amount issued amounts to a total of 15 million euros in seven-month promissory notes for Vidrala and 4.3 million euros for a term between 2 and 4 months for Sidenorin the so-called Alternative Fixed Income Market “MARF”.
Thanks to the development of a platform that uses smart contracts and DLT, the broadcast could be effective so that entities can easily interact in the distributed accounting system.
According to the official statement by Norbolsa, Technology development was made possible using the Linux Foundation’s Hyperledger Fabric platform. In addition, the company complemented this architecture with a web application designed to facilitate human interaction with the blockchain network for the respective monitoring and traceability of the functions assigned to the various roles of those involved in the process.
Thanks to the transparent real-time monitoring capacity of the blockchain platform, those involved can simultaneously interact with the information recorded in the blockchain.
For now, The company wants to prepare for the future launch of similar products with new partners, using the power of blockchain technology.
“In the commitment to this technology with a great ability to disrupt the financial sector, Kutxabank and Norbolsa are actively involved in initiatives launched in various areas of their business,” the statement said.
Norbolsa is a registered advisor to the Vidrala promissory note program and coordinator of the Sidenor program. The company was founded in July 1989 by the Basque Savings Banks in Bilbao and is registered in the register of investment firms of the CNMV.
The company specializes in stock brokers and a wide range of high quality financial services in both Spain and international markets.
The use of the blockchain to ensure uniqueness and transparency in the endorsement chain was a milestone as it had to solve one of the trivial problems of avoiding multiplicity when trying to digitize a promissory note.
The technology enables endorsements to be recorded in a global, public, decentralized, open, and immutable database allowing review for the current owner as well as those interested in acquiring them.
Since the blockchain enables the generation of a unique identifier that is linked to the electronic promissory note, there is no room for fraudulent copies when digitizing the promissory notes in the blockchain.
If the change of ownership takes place, it remains registered in the blockchain, as the unique identifier is transferred from the old to the new owner of the promissory note.
In this way, the payment of debts between owners is ensured and with the guarantee of the transparency of the blockchain and its immutability, to avoid malicious third parties modifying the electronic document for their convenience.
What Norbolsa has achieved can also be seen in successful use cases in issuing promissory notes on the Armadillo Rent marketplace under the Mifiel platform.