Yesterday credit rating company TransUnion announced it will make off-chain credit scores available for DeFi lending on public blockchain. The solution is in partnership with blockchain startup Spring Labs, in which Transunion is an investor, and Quadrata, a Spring Labs spinoff that provides digital identity passports and KYC solutions.
To date, most DeFi lending has been over-collateralized with cryptocurrencies. However, DeFi lending is increasingly expanding beyond this, triggering the need for credit scores.
“Credit scoring is an important tool for lenders to help mitigate risk regardless of the platform being used,” said Jason Laky, EVP of financial services at TransUnion. “This partnership with Spring Labs and Quadrata will allow for DeFi lenders to have access to this critical information when making their lending decisions.”
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