TransUnion, Spring Labs and Quadrata Partner to Deliver Credit Scoring to Blockchain
Consumer-Permissioned Score Will Inform Risk-Based Decisioning on the Platform
In a move that should help lenders make better, more informed decisions on credit applications submitted using blockchain technology, TransUnion (NYSE: TRU) has partnered with Spring Labs and Quadrata to deliver off-chain credit scoring to DeFi and Web3 applications (internet applications based on public blockchains) for the first time.
Through this new TransUnion service, off-chain credit data will be delivered to DApps (DeFi Applications) using Spring Labs technology and Quadrata, a digital passport network that was spun out from Spring Labs. The credit data will be provided at the request of the consumer. This patented process, developed by Spring Labs, will enable the delivery of the credit scoring data while maintaining the privacy of the consumer’s identity on blockchain. The credit score will be delivered from TransUnion facilitated by Spring Labs technology directly to the consumer with excerpt information subsequently shared by the user with the DApp.
Credit scoring is an important tool for lenders to help mitigate risk regardless of the platform being used. This partnership with Spring Labs and Quadrata will allow for DeFi lenders to have access to this critical information when making their lending decisions with confidence, ultimately minimizing their risk and providing borrowers more opportunity for better terms.
The partnership comes at an important time when lenders are seeking to establish a more inclusive lending environment, often involving the creation of pathways to consumer lending for many to whom none were previously available or accessible. When it comes to blockchain technology, privacy concerns had previously kept credit data out of view of DeFi lenders. The combination of credit score data provided by TransUnion, which can offer credit scoring for nearly the entire U.S. adult population, along with Quadrata’s digital passport, will provide lending opportunities to a new group of consumers.
“As more consumers and lenders move to blockchain to conduct business, it’s important to ensure that the balance is struck between the information that lenders need to assess risk and the privacy and anonymity expected by users of the technology,” said John Sun, chief executive officer of Spring Labs. “This new product featuring TransUnion’s identity and credit data at its core is a big step toward achieving that balance and allowing more lending opportunities on blockchain while minimizing risk.”
“We see credit information on-chain as a key element for consumers to access more capital-efficient solutions in web3,” said Lisa Fridman, President at Quadrata. “It’s an important step to leveraging blockchain technology for essential financial use cases in the future.”
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company with over 12,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good®—and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
About Spring Labs:
Spring Labs provides enterprise-grade data security for sensitive information, such as consumer personally identifiable information, leveraging “private, vaultless tokenization”, a technology we pioneered and patented. We power multiple secure data exchange networks to help mitigate fraud and improve verification capabilities. We also help organizations dramatically reduce their sensitive data footprint, minimizing the consequences of a breach. Based in Marina Del Rey, California, Spring Labs was founded in 2017 by Adam Jiwan, John Sun, and Anna Fridman. Spring Labs has approximately 40 employees and has raised over $63M from investors including Transunion, GreatPoint Ventures, August Capital, GM Ventures, and others.
Quadrata is a passport network bringing the identity and compliance layer to DeFi applications on existing public blockchains such as Ethereum. Smart contract applications are able to leverage Quadrata’s proprietary technology to natively access KYC/AML status, country of residence as well as credit reputation and accredited investor status of Quadrata passport holders. Quadrata is a spin-out from Spring Labs, incubated as part of Spring Labs’ fundamental commitment to developing and promoting blockchain-based technologies.