The Arizona Attorney General’s Office has accepted Sweetbridge as one of the first three projects into its new Financial Technology Sandbox.
Sweetbridge is focusing on token-based asset lending on vehicles. It can now offer blockchain loans backed by real assets, starting with car titles in Arizona. These loans were selected because it felt it was an underserved industry, filled with predatory practices, with average APRs in the triple digits.
Up to 10,000 Arizonans will be able to take out loans on their car titles at estimated rates of 20% APR or less. Scott Nelson, CEO and Founder of Sweetbridge, says: “We are thrilled to participate in the first FinTech sandbox programme in the United States, and are thankful to the State of Arizona, Attorney General Mark Brnovich, and Rep. Jeff Weninger for their leadership in bringing this programme to the State of Arizona.”
“We are transforming how lending is done. We believe this to be the first regulatory approval for tokenization of titled assets for lending anywhere in the world, and we started in one of the most difficult regulatory environments, the United States,” he adds.
“Through the visionary leadership in the State of Arizona, we will lower the cost of lending against all forms of assets, here and across the globe. There is a better way to offer people liquidity in their assets, and we can demonstrate that value through this Arizona pilot project.”