- TransUnion has partnered with Spring Labs and Quadrata to bring credit scores to the blockchain.
- Spring Labs’ technology will deliver TransUnion-powered data to Quadrata’s Web3 digital passport.
- TransUnion EVP of Financial Services Jason Laky said the move will “allow DeFi borrowers to have access to this critical information as they make their lending decisions with confidence, ultimately minimizing risk and giving borrowers greater opportunity for better terms.”
TransUnion has partnered with two firms to bring credit scores into the blockchain. The Illinois-based company has tapped data security firm Spring Labs and decentralized network expert Quadrata to help lenders make data-driven decisions on credit applications submitted via the blockchain.
The partnership will enable TransUnion – at its customer’s request – to provide credit data not stored on a blockchain to decentralized financial applications (DApps). TransUnion, which keeps consumer credit data off-chain, will leverage Spring Lab’s patented technology that delivers credit scoring data while keeping the consumer’s identity on the blockchain secure. Quadrata will leverage its digital passport, a Web3 identity solution that will automatically synchronize credit scoring data across the blockchain.
“Credit scoring is an important tool for lenders to mitigate risk regardless of the platform used,” said TransUnion EVP of Financial Services Jason Laky. “This partnership with Spring Labs and Quadrata will enable DeFi borrowers to have access to this critical information as they make their lending decisions with confidence, ultimately minimizing their risk and giving borrowers greater opportunity for better terms.”
DeFi lending platforms have the potential to reach a more diverse set of consumers than traditional lending platforms. Not only do they offer more flexibility compared to traditional lenders, but they also allow the borrower to customize their loan. Borrowers choose the security they provide, the duration of the loan and the interest rate they are willing to pay.
Bringing credit scoring to the Web3 space will facilitate DeFi lending, reduce risk for DeFi borrowers, and increase opportunities for borrowers. “As more consumers and lenders move to blockchain to conduct business, it’s important to ensure that balance is struck between the information lenders need to assess risk and the privacy and anonymity expected by users of the technology,” said Spring Labs CEO John Sun. “This new product with 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.”
Photo by Joey Kyber
