This technology makes it possible to transfer data and capital in a completely secure manner thanks to sophisticated encryption and coding. Aware of the change that this disruption can have in the world of banking, at Santander we want to be pioneers when it comes to applying it to our services.
You may have heard this term and still not know what it means, nor the impact it could have on your life. As happened with the incursion of the Internet, blockchain could change the way we relate to the digital world of banking, favoring, among other aspects, transactions, security or the management of the online entity. In addition, it allows a reduction of the bureaucracy required in financial operations and improves transparency.
The blockchain is a technology that allows the creation of networks of devices without the need for a central and localized server to connect them to each other. It could be said that it works like a ledger, where the operations of buying, selling or any transaction are recorded. For these movements to be recorded, they must have been approved by the other participants in the ‘block’ network, i.e., the users of this technology. And, once the information is entered in them, it can no longer be deleted, only new records can be added.
A fast and fraud-free payment alternative
One of the advantages of this tool is that it offers the possibility of carrying out economic transactions quickly and securely against possible fraud and manipulation, since it uses encryption and encoding. This allows companies to offer a more global payment alternative to customers, without jeopardizing the security of both parties.
Another great benefit it offers is the possibility of implementing a totally transparent business system in which we can all see the status of the accounts registered in “this big book”, i.e., what comes in and what goes out, in real time and at a low cost.
But the blockchain does not only work for economic transactions. With this technology, important company documents and information can be stored and transferred without the possibility of anyone being able to access it without your consent. And more importantly: without the danger of it being modified. To guarantee the security and transparency of the vote, at Santander we use this technology for voting at our General Shareholders’ Meeting.
We invest in security and transparency
Aware of the impact blockchain can have on the financial world, we have launched the first bond with end-to-end blockchain technology, marking a first step towards a possible secondary market for tokenized securities in the future. The $20 million bond will be held on the blockchain for its entire life, until maturity.
For the issuance of this bond, we have used the Ethereum public blockchain, one of the most advanced open source blockchain technologies. This has allowed us to securely tokenize the bond and register it permissively on the blockchain.
“Santander is at the forefront in the process of deep digital transformation of the financial sector and this transaction is an example. We want to leverage any technology that accelerates that process to move our customers forward and make them faster and more efficient, and blockchain is one of those technologies,” said José García Cantera, CFO of Banco Santander.
More and more people and companies are entrusting their data to this technology for the aforementioned reasons. For blockchain to become an everyday reality is something that could happen very soon and we, committed to innovation, want to contribute to a technology that helps create a more open, connected and transparent society for citizens.