Banco Hipotecario, a state-owned company from El Salvador, uses four crypto startups for blockchain solutions

The adoption of bitcoin as legal tender in El Salvador has forced the local financial system to adapt.

Considering these changes, Banco Hipotecario, a national commercial bank in El Salvador, has started working with four companies that will develop blockchain solutions that they believe will increase financial inclusion for the bank’s customers.

The bank started working with an alliance formed by TESOBE, the company behind the Open Bank project, and API3, a decentralized autonomous organization that provides data feeds to blockchain-based smart contracts.

The alliance also includes decentralized digital asset management infrastructure company Qredo and Sovryn, a decentralized bitcoin trading and lending platform.

“We are working with the bank to determine what kind of steps we need to take in order to be able to put our technologies together,” said Robert Rico, head of Open Banking at API3, who also said that the Central Bank of El Salvador and Government officials were part of the exploratory talks.

Rico added that there is still no estimated date for a product launch.

The products could be solutions related to bitcoin payments or holding bitcoin in personal balance sheets or wallets, Qredo COO Josh Goodbody said.

According to Edan Yago, co-founder of Sovryn, there could be custodial solutions with the ability to deliver information from the bank via APIs to the blockchain and vice versa, in addition to the development of lending and trading services, and bitcoin backed stablecoins. .

According to the announcement, Qredo’s decentralized custody infrastructure will enable bitcoin banking solutions in El Salvador, while Sovryn will provide infrastructure “to enable traditional banks to offer bitcoin native DeFi products such as lending, trading and bitcoin-backed stablecoins to their customers. “

Feedback from the bank has been “very positive,” added Goodbody.

So far, the alliance only works with Banco Hipotecario, the companies told CoinDesk.

“The bitcoin law is very broad because it basically allows people to accept bitcoin or the US dollar, and we want to make sure that we help as much as possible in that process,” Rico said.

Simon Redfern, CEO of TESOBE and founder of the Open Bank Project, said in a statement that the combined technologies will help Banco Hipotecario deliver more transparent and inclusive financial services to Salvadorans, especially the under-banked part of the population.

He also said it would remove many of the uncertainties that exist between El Salvador and the benefits of adopting cryptocurrency.

Banco Hipotecario de El Salvador is one of the four public banks in the country, along with Banco de Fomento Agropecuario, Banco de Desarrollo de El Salvador (Bandesal) and Banco Central de Reserva – the Central Bank of El Salvador – which does not issue its own currency because the US dollar and bitcoin are used as legal tender.

“This alliance is a great opportunity for El Salvador to create new financial products that meet the needs of our Salvadoran citizens,” Celina Padilla, president of Banque Hipotecario de El Salvador, said in a statement.

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