TransUnion To Launch Off-chain Credit Scoring To DeFi And Web3 Applications
Key Points:
- TransUnion revealed plans to begin providing credit scoring on public blockchain networks.
- Credit information will be accessible to dApps at the consumer’s request via the new TransUnion service.
- TransUnion collaborated with Spring Labs and Quadrata to provide credit data through a digital passport network.
TransUnion, one of the three main credit agencies in the United States, said on Thursday that it would begin providing credit ratings to decentralized financing (DeFi) lenders next week.
At the consumer’s request, credit information will be made accessible to decentralized apps, or dApps, via the new TransUnion service. The customer will get complete credit information, with extracts sent to the dApp.
TransUnion has collaborated with Spring Labs and Quadrata to supply credit data through a digital passport network that will safeguard the consumer’s identity on the blockchain. The initiative seems to have taken some time to get off the ground, having been launched more than a year ago.
“As more consumers and lenders move to blockchain to conduct business, it’s important to ensure that the balance is struck between the information that lenders need to assess risk and the privacy and anonymity expected by users of the technology,” said John Sun, chief executive officer of Spring Labs.
Spring Labs manages identification verification and obtains credit score data from TransUnion. Spring Labs also offers an attestation, which is essentially a signature stating that it assessed this user’s score and found it to be within the range set by the DeFi application. The information is obtained “off chain,” meaning it is not recorded on a blockchain.
TransUnion’s senior vice president of financial services, Jason Laky, stated:
“This partnership with Spring Labs and Quadrata will allow for DeFi lenders to have access to this critical information when making their lending decisions with confidence, ultimately minimizing their risk and providing borrowers more opportunity for better terms.”
TransUnion’s current endeavor is part of a wider trend in which conventional financial (TradFi) services and crypto markets have grown increasingly linked as TradFi businesses investigate methods to harness blockchain technology and their existing market presence to benefit crypto investors.
Meanwhile, TransUnion rival Experian established a partnership with Bulgarian DeFi financing platform Credefi at the start of 2023. Credefi received “the rights to utilize Experian’s officially recognized and renowned brand materials” as part of the agreement. Under the transaction, Experian will participate in European Green Company scoring.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
News
TransUnion To Launch Off-chain Credit Scoring To DeFi And Web3 Applications
Key Points:
- TransUnion revealed plans to begin providing credit scoring on public blockchain networks.
- Credit information will be accessible to dApps at the consumer’s request via the new TransUnion service.
- TransUnion collaborated with Spring Labs and Quadrata to provide credit data through a digital passport network.
TransUnion, one of the three main credit agencies in the United States, said on Thursday that it would begin providing credit ratings to decentralized financing (DeFi) lenders next week.
At the consumer’s request, credit information will be made accessible to decentralized apps, or dApps, via the new TransUnion service. The customer will get complete credit information, with extracts sent to the dApp.
TransUnion has collaborated with Spring Labs and Quadrata to supply credit data through a digital passport network that will safeguard the consumer’s identity on the blockchain. The initiative seems to have taken some time to get off the ground, having been launched more than a year ago.
“As more consumers and lenders move to blockchain to conduct business, it’s important to ensure that the balance is struck between the information that lenders need to assess risk and the privacy and anonymity expected by users of the technology,” said John Sun, chief executive officer of Spring Labs.
Spring Labs manages identification verification and obtains credit score data from TransUnion. Spring Labs also offers an attestation, which is essentially a signature stating that it assessed this user’s score and found it to be within the range set by the DeFi application. The information is obtained “off chain,” meaning it is not recorded on a blockchain.
TransUnion’s senior vice president of financial services, Jason Laky, stated:
“This partnership with Spring Labs and Quadrata will allow for DeFi lenders to have access to this critical information when making their lending decisions with confidence, ultimately minimizing their risk and providing borrowers more opportunity for better terms.”
TransUnion’s current endeavor is part of a wider trend in which conventional financial (TradFi) services and crypto markets have grown increasingly linked as TradFi businesses investigate methods to harness blockchain technology and their existing market presence to benefit crypto investors.
Meanwhile, TransUnion rival Experian established a partnership with Bulgarian DeFi financing platform Credefi at the start of 2023. Credefi received “the rights to utilize Experian’s officially recognized and renowned brand materials” as part of the agreement. Under the transaction, Experian will participate in European Green Company scoring.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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