Crypto-backed P2P lender processes 10,000 credit scores in a month

Cryptocurrency-backed peer-to-peer lender RociFi has minted 10,000 decentralized finance (DeFi)-native credit scores in just over a month.

The platform has also issued more than 700 pseudo-anonymous under-collateralized loans since it was launched earlier this year.

“The growth appears to be attributed to users looking to integrate credit reputation into the growing onchain credentials, plus access to more efficient capital markets,” a RociFi spokesperson said.

A recent analysis by TradingPlatforms found that the DeFi sector is recovering from the crypto market’s downturn.

“There’s been a recent influx of capital into the DeFi sector, with over $17.89bn (£14.78bn) being invested in it in the last two months,” said TradingPlatforms’ Edith Reads.

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“This investment shows that there’s growing confidence in the sector regardless of the bearish tendencies exhibited by the crypto market.”

RociFi has developed a protocol that leverages data and machine learning to facilitate under-collateralised loans through the blockchain.

Its scoring process assesses borrowers based on their digital identity and allows investors to lend money according to the credit risk scores.

In April 2022, RociFi closed a seed funding round of $2.7m from Arrington, Goldentree, Nexo, LD Capital and Skynet Trading, to expand its engineering and labs teams and take the product to market.

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