The developers of Cardano are working on an enterprise lending program in Africa and hope to have it ready for rollout soon.
Over the weekend, IOHK's African Operations director John O'Connor announced the first loans via Cardano's "RealFi" system had been issued, which went out to small and medium-sized businesses in Kenya.
"Hopefully, we can turn this into a product soon so that anyone with a Cardano can make an impact while earning yield that is uncorrelated to crypto," O'Connor said.
A recent IOHK blog post reports that Cardano's initiative is bringing decentralized finance (DeFi) into the mainstream.
As part of its mission, IOHK says it is creating a financial ecosystem that will streamline crypto liquidity, economic activity, yields for crypto holders, and offers more credit options to the general public.
IOHK's African operations director, John Connor, recently discussed lending regulations in Kenya in a podcast:
"[Financial lending] flows are being impeded by a host of regulatory challenges.
Imagine I want to lend to this Kenya and [small and medium-sized enterprises fund]. A Kenyan regulator needs to know who is investing money into this opportunity and what their [know-your-customer] information is.
It makes sense in a world of [traditional finance] where I have to deal with all of these issues.
What if I'm just lending from my wallet? Do I have to fill out [know-your-customer] forms and all of that? The situation is slightly different."
Furthermore, he pointed out that they are well-positioned to either ameliorate these blockers via technology or to collaborate with governments on undertaking regulatory changes, saying, "we've now sort of reached that size and scope."