The State Bank of Mauritius (SBM) has indicated that it will start accepting Bitcoin and Ethereum as collateral for loans. This new move is a result of the Bank’s collaboration with FinTech Company SALT.
SALT stands for Secured Automated Lending Technology – they have developed a lending platform which allows people to use their Ethereum and Bitcoin holdings as collateral for loans and credits. SALT allows loan repayment in various national currencies.
“Developing and implementing the technology on an industrial scale is the next step” Benjamin Yablon who is a Co-Founder with SALT reportedly stated. “Our partnership with SBM can help financial institutions realize this potential, bringing new levels of efficiency and revenue. With forward thinking institutions like SBM as partners, SALT has the potential to provide its services to even more global blockchain community,” he added.
The strategy for revenue generation for SALT is based on transaction fees and licensing. The SALT platform has been built based on the Ethereum Blockchain and also incorporates industry-standard Ethereum ERC 20 smart contracts.
“This relationship can enable the SBM to increase the scope and scale of its reach, providing an effective manner in which to participate with the world’s most rapidly expanding asset classes,” the Chairperson of SBM Group, KC Li Kwong Wing said.
SBM is gradually expanding across the continent with branches in Kenya and Madagascar, and it is currently the second largest financial institution in Mauritius.
Yablon, co-founder at SALT concluded by saying that the collaboration between his outfit and that of SBM will present an opportunity to rope in a new demographic market though the provision of expertise and resources to develop and drive the adoption of innovative blockchain technology and its accompanying assets. He further said that the collaboration between both entities will help to drive the adoption of blockchain assets by the wider mainstream population, and this can be propelled when users begin to get conversant with SALT’s protocol and asset agnostic distributed ledger based architecture.