Last updated on September 6th, 2023
Credit scores will be hitting Blockchain lending soon. Consumers on Web 3 and DeFi applications will have new lending options made possible by credit scoring provided by TransUnion in partnership with Spring Labs and Quadrata. Here’s what you need to know.
TransUnion To Bring Credit Scoring To DeFi & Web3
TransUnion is on its way to bringing credit scoring to Blockchain. When you think “blockchain,” you probably don’t think “credit scores.” For the first time, Web 3 and DeFi applications will have a way to assess lending risks via private consumer credit data. All made possible through TransUnion’s partnerships with Spring Labs and Quadrata.
The new Transunion service will be delivered to DeFi Applications using Spring Labs tech and Quadrata, a passport network with identity and compliance abilities for Blockchain apps. Its purpose is to help lenders make educated decisions on Blockchain credit applications. The off-chain credit scoring will require consumer permission while maintaining the user’s privacy on Blockchain.
The new method is made possible through Spring Labs’ patented process. Spring Labs will facilitate the credit score delivered by TransUnion to the consumer. The supplied data will contain extracted information – to help keep any user’s identity anonymous. The consumer can then provide their credit score to the DeFi App doing the lending for review.
Privacy has always been at the head of blockchain technology as both an advantage and a concern. With the tech developed by Spring Labs and Quadrata, TransUnion can deliver private credit scoring. It paves the way for a new market of consumers and broader inclusivity for lending services under the Blockchain pillar.
“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. “This new product featuring TransUnion’s identity and credit data at its core is a big step toward achieving that balance and allowing more lending opportunities on blockchain while minimizing risk.” Source.
Widely known for its credit reporting, TransUnion is a global information and insights company with over 12,000 associates operating in more than 30 countries. The company’s information and insight assist organizations and consumers to transact with confidence and accomplish great things.
About Spring Labs
The Spring Labs company provides enterprise-grade data security for sensitive information, such as consumer personally identifiable information, leveraging “private, vaultless tokenization”, pioneered and patented proprietary technology. For secure data with minimized risk.
The Quadrata company is a passport network bringing the identity and compliance layer to DeFi applications on existing public blockchains such as Ethereum. Smart contract applications are able to leverage Quadrata’s proprietary technology to natively access KYC/AML status, country of residence as well as credit reputation and accredited investor status of Quadrata passport holders. Quadrata is a spin-out from Spring Labs, incubated as part of Spring Labs’ fundamental commitment to developing and promoting blockchain-based technologies. Source.
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