A new alliance between Banco Hipotecario, TESOBE – the company behind the Open Bank Project – API3, Qredo, and Sovryn will bring the next generation of blockchain-enabled open banking solutions to drive financial inclusion in El Salvador, which passed a Bitcoin Law in early September.
The law introduced unfamiliar challenges for traditional financial institutions as well as more specific consumer needs related to bitcoin storage and currency exchange. Banco Hipotecario de El Salvador, a leading national bank with a commercial focus, joined forces with the Open Bank Project to assess and facilitate better solutions for Salvadorans and the financial services sector.
The existing 10-year partnership between OBP and API3 has already set ambitions to connect traditional finance and the decentralized web. The alliance has selected Qredo’s decentralized custodial infrastructure to power bitcoin banking solutions in the country. Sovryn – the bitcoin-native decentralized trading and lending platform – will provide the financial services framework for traditional banks to build applications (dApps) offering DeFi services such as lending, swaps, and trading.
This strategic alliance aims to accelerate the democratization of electronic payments and help citizens enjoy the benefits of digital transactions, as well as support the nation’s larger financial framework to promote a smooth and effective integration.
“This alliance is a great opportunity for El Salvador to create new financial products that support the needs of our Salvadoran citizens,” said Celina Padilla, president of Banco Hipotecario de El Salvador, in a statement. “We are closer than ever to achieving true financial inclusion and I am proud that Banco Hipotecario is the first bank at the national level to carry out this type of alliance. Now everyone has their eyes on our country and on our bank.”
Simon Redfern, CEO of TESOBE and founder of the Open Bank Project, said in a statement: “Our combined technologies will help Banco Hipotecario deliver more transparent and inclusive financial services to Salvadorans – especially the underbanked part of the population – and will remove many of the uncertainties that stand between El Salvador and the advantages of cryptocurrency adoption.”
“As the world’s financial system is modernized, we hope to help build a foundation for the future of digital banking that can easily be adapted to fit the needs of those who need it most.” says Heikki Vänttinen, co-Founder at API3, in a statement.
Anthony Foy, Qredo CEO, said in a statement: “Qredo brings the scalability and instant settlement to underpin bitcoin banking infrastructure, making it possible to adopt crypto assets securely on a national scale, with none of the governance limitations imposed by private keys.”