The Spain-based Banco Bilbao Vizcaya Argentaria (BBVA) bank has reportedly decided to conduct research on advanced cryptography applicable for the financial sector, via a newly forged alliance. 

Specifically, the BBVA has teamed up with research facility IMDEA Software Institution from Madrid, to look closely into zero-knowledge proofs (ZKPs), as well as other “advanced cryptographic techniques.”

Both firms will reportedly have a right to use each other’s tech for enhanced exploring speed of various applications, primarily for financial industry-focused cryptography, including measures to make sure all information shared across the network will not be leaked to 3rd-party sides. 

The research will reportedly further explore “the development of viable prototypes that can be incorporated in the digital products and services offered to BBVA customers.”

Until recently, these cryptographic techniques were only of interest on a theoretical level. In recent years, we have seen enormous advances that could make them applicable to some practical scenarios.” IMDEA’s Antonio Faonio reportedly remarked. 

The first research phase will reportedly study thoroughly the existing challenges holding back an enhanced adoption rate of zero-knowledge proofs integration, to different communications systems network, as well as the insufficiency of common standards for the use of cryptographic protocols.

Both firms have reportedly carried out previous studies of the matter and have acquired a significant amount of experience, regarding the field of ZKPs.