Tokenizing Real-World Assets on Rootstock: Car2Token Developer Spotlight
For decades, vast improvements in the financial sector have often left underbanked consumers behind — leaving them unable to access credit.
But the crypto space is establishing a track record of narrowing this gap, with upcoming trends including tokenization, unlocking new ways of helping hard-working consumers.
Building upon its reputation as Bitcoin’s biggest and oldest sidechain, and via the successful track record of its Grant Program, Rootstock is creating an environment where entrepreneurs can build dApps that allow digital assets to benefit everyone.
Got an idea for a web3 application? Build it today with the Rootstock Grants Program.
What is Car2Token
A shining example of what this looks like in practice comes in the form of Car2Token, a decentralized ecosystem that allows vehicles to be tokenized and used as collateral for loans. Borrowers with a consistent payment history are rewarded in cryptocurrency — and more competitive interest rates are offered for eco-friendly cars.
Joaquin Repetto Cordeyro is the chief technology officer of this cutting-edge project, which successfully applied for funding in the Rootstock Grants Program.
The site enables users to enter their vehicle details and discover how much they can borrow, accept an offer, and then receive crypto or fiat quickly and easily within an in-app wallet.
Tokenizing real-world assets for financial inclusion
“The inspiration behind this idea comes from the need to democratize access to the financial system and create a more transparent and efficient market for vehicle owners,” Joaquin says. “Our mission is to help people who are unable to qualify for a traditional loan, whether due to informal employment or difficulty proving their income.”
Self-employed individuals, or those who see their earnings fluctuate from month to month, often face an uphill struggle when attempting to borrow from traditional institutions — even if they have a wealth of information proving they have the financial means to keep up repayments.
Why build on Rootstock
Joaquin says Car2Token’s vision of leveraging DeFi to foster financial inclusion aligns well with Rootstock’s ethos — and this network offers the technology needed to make it a reality. Rootstock enables EVM-compatible smart contracts to be secured by the Bitcoin blockchain, complete with lower gas fees.
While the Rootstock Grants Program allows startups to receive the financial support they need to thrive, Joaquin says the mentorship on offer made an immeasurable difference as well.
“They have offered a lot of support across different areas,” he adds. “Development, marketing, and economic aspects have been crucial for our project’s growth.”
For Car2Token, it meant having a partner every step of the way while navigating legal challenges and ensuring compliance — as well as putting the project’s infrastructure through its paces by enlisting the help of beta testers.
What’s next for Car2Token
Joaquin says Car2Token is now ready to move up a gear, and has received invaluable feedback as it prepares to serve customers across Argentina.
Setting up the project’s roadmap, he reveals: “We aim to partner in the next month with investors to fund our capital pool and are excited about running the first 1,000 loans.”
How to succeed in the Rootstock Grants Program
Car2Token is just one of many success stories within the Rootstock Grants Program, which is now open to applications from budding builders once again.
Joaquin’s advice to those who are interested is simple:
- Engage in hackathons to refine ideas.
- Seek community support for guidance and feedback.
- Understand customer needs and align solutions with Rootstock’s ecosystem growth.
“The grant program significantly complemented our efforts in developing the minimum viable product,” he says. “It allowed us to dedicate time, effort, and resources to specifically focus on development and building a community, which are essentials for a crypto startup.”
Apply today
Whether you’re an entrepreneur with a big idea or a developer passionate about web3 innovation, Rootstock’s Grants Program is your gateway to creating meaningful change. Apply today and be part of the future of decentralized finance.