Blockchain lender SALT has partnered with Mauritius’ second largest bank to enable cash lending for digital assets. SALT, recently wrapped up a successful September ICO announced the partnership on Friday. The startup connects lenders and borrowers by leveraging blockchain assets as collateral for credit creation. The Island of Mauritius brands itself as a progressive financial center in Africa. The country is now positioning itself as a destination for blockchain startups.
This exploratory partnership is strategic for both firms. SALT needs a favorable banking environment for its crypto assets lending business. Mauritius is one of the most friendly financial services jurisdictions. SBM is valued at $623 million on the country’s stock exchange.
Chairman of the SBM Group, K.C. Li Kwong Wing, said:
“This relationship will go a long way toward achieving our nation’s goal of becoming a hub for outstanding blockchain companies and fostering financial inclusion.”
SALT’s (Secured Automated Lending Technology) product is geared towards the unbanked that may not have a financial credit history. They may, however, have access to digital assets and cryptocurrencies which do not require a bank account. With savings in digital assets, Salt lets them borrow fiat denominated loans using their assets as collateral. Salt connects them with lenders from anywhere in the world.
SBM’s operations in developing countries in Africa – Kenya, and Asia – India is ideal for the startup’s ideal customers.
Salt also caters to cryptocurrency investors with significant holdings who may opt for the service to avoid liquidating their assets.
However, SALT’s business model is reliant on the traditional banking system. Approved loan funds are transferred to borrowers via a bank account in dollars. The collateral is only returned once the loan is repaid via periodic repayments.
With the Island’s world-class banking infrastructure and a partner with $5.2 billion in assets, SALT’s operations have an ideal match to explore their business model. SALT co-founder Benjamin Yablon said he had relocated to Mauritius to kick off the initiative.
Yablon said of the partnership:
“The relationship will provide expertise and resources to develop and drive adoption of innovative blockchain business use cases, leveraging SALT’s protocol and asset agnostic distributed ledger based architecture.”
As one of many territories positioning themselves for the cryptocurrency industry, Mauritius has implemented a sandbox licensing regime for blockchain startups. Last week, Gibraltar, another financial service centre, became the first country to draft a regulatory framework for blockchain commercial use.
SALT and SBM’s partnership is a step to building an attractive ecosystem for distributed ledger technology opportunities on the island