TransUnion, one of the top three credit bureaus in the United States, announced on April 20 that it would begin providing credit ratings to public blockchain networks. Off-chain credit data has not previously been available for Web3 and decentralized finance (DeFi) applications.
In TransUnion’s new service, credit information will be made available to decentralized applications, or Dapps, at the consumer’s request. Full credit information will be delivered to the consumer, and statements will go to the Dapp.
TransUnion partnered with Spring Labs and quadrate to provide credit data through a network of digital passports that will protect the consumer’s identity on the blockchain. The project appears to have been slow to get off the ground, having been first announced over a year ago.
TransUnion’s executive vice president of financial services, Jason Laky said the new product will help minimize risk for lenders while “offering borrowers more opportunities to get better terms.” TransUnion said it “can provide credit ratings to nearly the entire adult population in the United States” and has operating partners in more than 30 countries.
$TRU TransUnion, Spring Labs and Quadrata Partner to Deliver Credit Scoring to Blockchainhttps://t.co/StRYgos1qe
—Stock News Bot (@StockNewsBot2) April 20, 2023
Credit scoring has long been a sensitive topic in the DeFi space. TransUnion competitor Experian announced in early 2023 that it was partnering with Bulgarian DeFi lending platform Credefi. That agreement granted Credefi “the rights to use Experian’s officially recognized and reputable brand materials.” Experian will participate in the European Green Company score through the agreement. In October, Equifax, TransUnion’s other big competitor, said it was partnering with blockchain Oasis to offer Know Your Customer services.
Masa Finance recently launched a soulbound token-based identity protocol that also included on-chain credit information. Pngme, which, like Masa Finance, was founded by Brendan Playford, helped create scores for the “credit invisible” in Africa based on mobile money data.
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