The Arizona Attorney General’s Office has announced it has accepted Sweetbridge as one of the first three projects into its newly developed Financial Technology Sandbox.

The Arizona FinTech Sandbox is the first financial technology testing sandbox in the US. It is modeled after the UK Financial Conduct Authority’s sandbox, and the concept was endorsed by the U.S. Treasury in its FinTech Report.

Sweetbridge entered the Sandbox with a very particular use case for its protocols: token-based asset lending on vehicles.

Sweetbridge can now offer blockchain loans backed by real assets, starting with car titles in Arizona. The organization selected these loans because it felt it was an underserved industry, filled with predatory practices, with average APRs in the triple digits.

Through the Sandbox, up to 10,000 Arizonans will be able to take out loans on their car titles at estimated rates of 20% APR or less, made possible by Sweetbridge protocols and blockchain technology.

An architect of the Arizona Sandbox, Paul Watkins, who is leading the Bureau of Consumer Financial Protection’s Office of Innovation, has signaled his intent to pursue a bureau or multi-agency federal sandbox. The trend toward sandboxes could allow Sweetbridge to expand tokenized projects into other states and additional offerings.