PHOENIX—The Arizona Attorney General’s Office has accepted Sweetbridge as one of the first three projects to be part of its new Financial Technology Sandbox.
Sweetbridge is focused on token-based asset lending on vehicles. It can now offer blockchain loans backed by real assets, starting with car titles in Arizona, Coin Rivet reported.
“These loans were selected because (Sweetbridge) felt it was an underserved industry, filled with predatory practices, with average APRs in the triple digits,” stated Coin Rivet, which said the startup’s rates would hover near 20% APR.
“We are thrilled to participate in the first fintech sandbox program 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 program to the State of Arizona,” said Scott Nelson, CEO and founder of Sweetbridge. “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.”