TransUnion, one of the three major credit reporting agencies in the US, has partnered with Spring Labs and Quadrata to provide credit scoring for public blockchain networks. Off-chain credit data have not been available to decentralized finance (DeFi) applications in the past, but the new TransUnion service will allow credit information to be accessed by decentralized applications at the request of the consumer.
The credit data will be delivered to the consumer, with excerpts going to the DApp, and will be protected through a digital passport network that ensures consumer identity on the blockchain is safeguarded. The service is expected to minimize lenders’ risk while providing borrowers with more opportunities for better terms. The project, which was first announced over a year ago, is expected to help address the sore point of credit scoring in DeFi.