Wednesday, May 18

The fintech ‘sandbox’ only admits four projects in its second call

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The second round of sandbox fintech Spanish walk. On this occasion, only four projects have finally been admitted to this soft regulation tool compared to the 13 submitted while the call was open.

Despite the fact that the number of admitted has been considerably lower than in the original call, the truth is that the acceptance rate has been higher. According to the figures provided by the General Secretariat of the Treasury, this time 30.8% of the applications have achieved final acceptance compared to 27% in the inaugural round.

Of the projects admitted, two will be subject to control by the National Securities Market Commission (CNMV). Another will be subject to the surveillance of the Bank of Spain and the rest will be a matter of the General Directorate of Insurance and Pension Funds, which remains as the institution that will have to supervise the least initiatives.

Those admitted

The name of the latter is Pension Space, linked to the field of pensions. The banking supervisory entity will depend on the project called ContractID_2021_10_13, linked to contract registration systems by financial entities.

One of the projects that will be subject to the CNMV seeks to create a market for tokens for the financing of new innovative companies. The so-called ‘Secondary Market for emerging companies (Equity Token Offering Y Debt Token Offering)’ comes just after the approval of the long-awaited Startups Law with which the Government intends to revitalize this cutting-edge segment.

The second is namedCreation of an investment vehicle in decentralized loan protocols‘. Behind this are the fund manager Imantia and the Madrid firm specializing in the custody of crypto assets Onyze. As both explained this Monday, this project “consists of the creation of the first decentralized finance (DeFi) loan fund.”

In this sense, they advance that “the fund’s policy will be to invest in the decentralized loan market through the stablecoins“, which makes it possible to minimize the volatility prevailing in the environment of the cryptocurrencies since the value of these is linked to the dollar or other fiduciary currencies.

decentralized finance

The promoters of the project have also anticipated that the objective of the fund in terms of profitability will be the interest rate generated in the loan market of stablecoins. In addition, they point out that away from the negative rates of traditional finance, these protocols generate returns of “between 5% and 10% interest”.

The director of business development Imantia, Mario Díaz, has emphasized the objective that “the underground economy accessible to investors” once the first digital assets, such as bitcoin, have already been consolidated. While Álvaro Alcañiz, co-founder and director of operations of Onyze has pointed to the “wide spectrum of financial products that are emerging from the hand of this new generation of digital assets”

With the publication of the new projects admitted in the sandbox, the negotiation period begins between the competent financial supervisor and the promoter of each of them for the establishment of the protocol that will govern the testing period. As had already been established, the maximum period for this will be three months. If an understanding is not reached at this point, unless establish an extension of deadlines, the project would be out of the sandbox.