TransUnion to begin providing identity-protected credit scoring for DeFi lending

TransUnion, 1 of the 3 large United States recognition reporting agencies, announced April 20 that it would statesman supplying recognition scoring to nationalist blockchain networks. Off-chain recognition information person not antecedently been disposable to Web3 and decentralized concern (DeFi) applications.

In the caller TransUnion service, recognition accusation volition beryllium made disposable to decentralized applications, oregon Dapps, astatine the consumer's request. Complete recognition accusation volition beryllium delivered to the consumer, and excerpts volition spell to the Dapp.

TransUnion partnered with Spring Labs and Quadrata to supply recognition information done a integer passport web that volition support the consumer’s individuality connected the blockchain. The task seemingly took immoderate clip to get disconnected the ground, arsenic it was archetypal announced implicit a twelvemonth ago.

TransUnion enforcement vice president of fiscal services Jason Laky said the caller merchandise volition assistance minimize lenders’ hazard portion “providing borrowers much accidental for amended terms.” TransUnion claimed it “can connection recognition scoring for astir the full U.S. big population” and has operating associates successful much than 30 countries.

$TRU TransUnion, Spring Labs and Quadrata Partner to Deliver Credit Scoring to Blockchainhttps://t.co/StRYgos1qe

Credit scoring has agelong been a sore spot for DeFi. TransUnion rival Experian announced astatine the opening of 2023 that it was partnering with Bulgarian DeFi lending level Credefi. That woody gave Credefi “the rights to usage Experian's officially recognized and reputable marque materials.” Experian volition enactment successful European Green Company scoring done the deal. In October, Equifax, the different large TransUnion competitor, said it was partnering with the Oasis blockchain to supply Know Your Customer services.

Related: DeFi securitization of real-world assets poses recognition risks, opportunities: S&P

Masa Finance precocious launched an individuality protocol based connected soulbound tokens that besides accommodated on-chain recognition information. Pngme, which, similar Masa Finance, was founded by Brendan Playford, helped make scores for “credit invisible” radical successful Africa based connected mobile wealth data.

Magazine: 6 Questions for Lisa Fridman of Quadrata