CHICAGO—TransUnion is now delivering credit scores for decentralized finance (DeFi) lenders.
TransUnion said it will provide traditional (off-chain) credit scores for individuals when they apply for loans on blockchain-based protocols without compromising applicants’ privacy, according to CoinDesk.
The firm is teaming up with data security firm Spring Labs and DeFi identity and compliance software developer Quadrata to provide the service, according to the report.
In a released statement, Jason Laky, executive vice president of financial services at TransUnion, said “credit scoring is an important tool for lenders to help mitigate risk regardless of the platform being used.”
‘Improved Decision-Making’
In the statement, Laky said TransUnion’s credit scoring allows consumers to use their credit history and share their credit information in a secure way with any blockchain-based lending protocol “while also helping lenders improve their decision-making and risk management.”
Loan applicants can request their credit score from TransUnion, delivered directly to consumers via Spring Labs with excerpted information subsequently shared with the lender, according to the report.
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