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 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.

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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,” said Jason Laky, executive vice president of financial services at TransUnion. “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.

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“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.”

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