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State Bank of Mauritius Now Accepts Cryptocurrency As Loan Collateral

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The State Bank of Mauritius (SBM) has partnered with Secured Automated Lending Technology (SALT) to enable its clients to use bitcoin and Ethereum’s ether as a guarantee for loans.

SBM has a market share of close to 25 percent making it the second largest bank with domestic banking assets in Mauritius. With subsidiaries in Kenya, Madagascar, India, and Mauritius, SBM Group’s stock is listed on the Stock Exchange of Mauritius and has about 17,000 international and domestic shareholders.

SALT, a tech company that has built a lending platform that allows for Ethereum’s ether and bitcoin to be used as collateral for loans. The loans can be disbursed to the borrower in various currencies that are not limited to the Euro or US dollar.

Framework for SBM & SALT Partnership

The Co-Founder at SALT, Benjamin Yablon said,

“Developing and implementing the technology on an industrial scale is the next step. 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 of the global blockchain community.”

SALT generates its revenue through licensing and transaction fees that are charged to the members who buy its technology. The lending platform membership is built on industry-standard Ethereum ERC20 smart contracts.

Yablon went on to state that the collaboration with SBM 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.

The Chairman at SBM Group, K.C Li Kwong Wing, stated that the FinTech lending platform that is blockchain-backed can give the SBM Group a massive opportunity to be a leader in this new global economy by facilitating the lending against borrower’s blockchain assets.

Kwong Wing went on to say,

“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 lending platform will be highly welcomed and a great asset for those who have bitcoin and ether and are looking for ways to utilise them. Partnerships such as the one between SALT and SBM bring Mauritius closer to becoming a leading hub for blockchain companies.

Tags : mauritius
Rachael Odhiambo

The author Rachael Odhiambo

Rachael is a Nairobi-based freelance writer who has been following bitcoin since 2016 and enjoys writing about a wide range of topics including technology, finance, and current events in Africa.