According to a statement released by the Arizona State Government yesterday, the office of the local Attorney General has accepted Sweetbridge as being one of the first three projects to be incorporated into the state’s Fintech Sandbox initiative.
— Sweetbridge (@sweetbridgeinc) November 5, 2018
For those unaware of what Sweetbridge is, it is essentially a token-based asset lending platform which in its current iteration is able to offer blockchain loans that are backed by real-world assets such as ‘car titles’ (within Arizona). As a result of using this unique business model, it is being estimated that nearly 10,000 Arizonans will now have the option to procure loans based simply on their ’car registration titles' (at estimated rates of 20% APR or less).
In regards to the matter, Scott Nelson, CEO and Founder of Sweetbridge, was noted as saying:
“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.”
If this initiative takes off as planned, it could help usher in a new form of lending that is not only cheaper but also against all forms of conventional finance. Not only that, Sweetbridge is also designed to offer investors with more liquidity for their assets, thus if this project is successful, this could be start of something unique.