Blockchain-based data-sharing platform Spring Labs announced that is bringing TransUnion’s identity and credit data on-chain to help accelerate Web 3 and DeFi adoption.
The off-chain credit data from TransUnion, a global information and insights company, will be made available on public blockchain networks via Spring Labs’ ky0x Digital Passport.
Ky0x Digital Passport allows users to provide information about themselves in order to access permissioned smart contract applications while preserving the privacy of their off-chain identity.
With access to ky0x’s Digital Passport’s data, DeFi and Web3 applications can build increasingly competitive financial products that only ky0x’s open and continuously growing system can enable.
In addition to credit data, the ky0x Digital Passport enables any Web3 application or smart contract to access off-chain identity and compliance information.
Users can opt in and provide permission to have their credit data attached to their wallet(s), and never need to reveal their identity and Personally Identifiable Information when affirming their reputation and credit history to DeFi applications and services.
“We want to foster greater trust (and adoption) in DeFi products and services, so we created the tool suite that makes available off-chain reputation (e.g. KYC/AML, credit) data on public blockchain that preserves the user’s privacy and anonymity.
With TransUnion’s identity and credit data, we’re providing the first building block to bringing reputation on-chain, in turn helping create a more efficient DeFi lending environment that can offer better loans, more available liquidity, and ultimately accelerate adoption in the space.”
John Sun, CEO of Spring Labs.
Enabling access to an industry-standard, trusted credit risk score like VantageScore on-chain and in a consumer permissioned, anonymous way opens the door to greater growth and financial inclusion in the DeFi space.
Paired with ky0x’s AML and KYC capabilities, DeFi lenders can transact with confidence at lower rates, potentially paving the way for lending without the over-collateralization that is standard today.”
Liz Pagel, SVP Consumer Lending Business Leader at TransUnion.
This article first appeared on Fintech News Switzerland.