Advancing Transparency and Efficiency in On-Chain Lending Markets
LISBON, Portugal, July 10, 2024 /PRNewswire/ — Credora, a leader in private market credit assessments, announces the integration of credit scores on-chain, marking a significant advancement in on-chain credit markets and the development of innovative lending solutions for DeFi.
Key Partnerships
Credora’s initial partnerships include Clearpool, Obligate, Mansa Finance, Credible Finance, Flow Blockchain, Stellar Blockchain, Nectar Finance, Idle Finance, More Markets, Credit Coop, DCG Earth, and Isle Finance. These collaborations are the first of many aimed at enhancing transparency and efficiency in on-chain lending markets.
Enhancing Transparency in Lending
Credora improves transparency in lending markets through comprehensive credit assessments and technology-driven credit scores. It benchmarks these scores against traditional credit rating agencies, enabling investors to evaluate the risk-adjusted returns of private credit deals. Credora’s credit scores have facilitated over $1.5 billion in loans to date.
Industry Endorsements
“Partnering with Credora allows Clearpool to integrate on-chain credit scores into our programmatic credit markets, enhancing loan efficiency and risk management. This collaboration sets a new standard for transparency in DeFi,” said Jakob Kronbichler, CEO of Clearpool.
“Our partnership with Credora brings on-chain credit scores to Mansa Finance, improving liquidity and transparency in secondary debt markets,” stated Mouloukou Sanoh, CEO and Founder of Mansa Finance.
The Importance of Credit in Modern Markets
Credit markets are essential to the global economy, with outstanding global credit estimated at $313 trillion. However, on-chain credit activity remains limited outside of US government debt. Market events such as the implosion of Three Arrows Capital and FTX have increased awareness of credit risk in the digital asset sector, driving efforts to bring a more transparent and risk managed debt capital market on-chain.
The Role of Credit Scores
Credit scores are vital for efficient capital allocation in the private credit sector. Credora’s transparent credit scores allow stakeholders to assess financial health and reliability, driving more efficient and diverse capital markets.
Innovations in On-Chain Credit
Credora’s innovations will allow for seamless borrower interactions, programmatic credit pools, secondary debt markets, and margin trading enhancements. With scores on-chain, protocols can automate loan terms to seamlessly manage exposure and embed legal agreements in the process, improving user experience and efficiency.
On-chain scores enable hybrid collateralized markets, lending markets with debt as collateral and other innovative applications that Credora will support.
For more information, visit the Credora blog.
About Credora
Credora’s brings transparency and efficiency to digital credit markets, enabling access for new investors. Credora’s technology-driven credit assessments leverage privacy-preserving technology and AI to generate dynamic credit ratings and reports at scale. Credora is backed by S&P and notable digital asset investors, and has produced over 200 credit assessments across a variety of sectors, facilitating over $1.5bn of credit.
SOURCE Credora
