Blockchain startup Quadrata has launched a Web3 passport that combines KYC and credit scoring data from TransUnion to be used for DeFi loans.
“We see tremendous growth potential for institutional DeFi powered by on-chain identity creation rooted in the existing off-chain reputation,” said Fabrice Cheng, co-founder and CEO of Quadrata. “Just as you are able to leverage ‘good behavior’ and a strong reputation in traditional finance to receive access to capital on favorable terms, you should be able to use that same approach on-chain through the Quadrata passport that lends a layer of trust through identity verification.”
For most DeFi loans, the user deposits cryptocurrency such as Bitcoin and Ethereum and borrows dollars in the form of a stablecoin. The amount borrowed is usually up to a maximum of 70% to 85% of the deposit.
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