Recently, TransUnion, which is one of the three major United States credit reporting agencies, announced that it would begin supplying credit scores for public blockchain networks too. This is the first time off-chain credit data would be available to Web 3.0 and Decentralized Finance (DeFi) applications.
This American credit reporting agency is tying up with Spring Labs and Quadrata to deliver this new service through a digital passport network. Such a new TransUnion service for providing credit information for the Web 3.0 domain will be available at the consumer’s request. The credit information will be provided to consumers while the excerpts go to the DApp.
Jason Laky, the executive vice president of TransUnion shared that the new product would minimize the lender’s risk while providing borrowers with immense opportunity. The credit agency further claimed it would offer credit scores for almost the US adult population and already has operating associates in more than 30 countries.
In the DeFi ecosystem credit scoring has been a sore spot for a long time. Moreover, the TransUnion competitor Experian also announced its partnership with the Bulgarian DeFi lending platform named Credefi at the beginning of 2023. As a part of this deal, Credefi would have the right to use Experian’s officially reputable and recognized brand materials. Furthermore, through this deal, Experian will participate in the scoring of the European Green Company too.
On the other hand, Equifax another competitor of TransUnion has partnered with Oasis blockchain to provide KYC services. Alongside, Masa Finance launched an identity protocol based on soulbound tokens to facilitate on–chain credit information too.