One of the largest U.S. credit bureaus, TransUnion, will provide credit scoring for users of public blockchain networks, including Web3 applications and decentralized finance (DeFi) platforms.
TransUnion, one of the largest credit agencies in the U.S., partnered with decentralized application companies Spring Labs and Quadrata to provide off-chain credit scores for DeFi protocols and Web3 projects.
The initiative is designed to help decentralized lending institutions make more informed decisions on applications submitted through public blockchain-based apps. Credit information will be provided through a digital passport network developed by Spring Labs, which enables the privacy of personal data.
The data will be made available upon user request. The credit score will be provided directly to the consumer with an excerpt of the information that will need to be transferred to the dApp to apply for a loan.
According to Jason Laky, Executive Vice President of Financial Services at TransUnion, the new product will help DeFi lenders reduce risk while empowering borrowers to get favorable terms. He also said TransUnion could provide a credit score for nearly all U.S. adults and had operating partners in over 30 countries.
Last month, Polygon Labs introduced Polygon ID, a digital trust solution tool designed to provide the necessary level of privacy for Web3 users.
