Borrowing Crypto With DeFi? TransUnion Shares Real-world Credit Scores

TransUnion is paying close attention to the crypto ecosystem, now connecting DeFi protocols with real-world credit scores

article-image

JHVEPhoto/Shutterstock, modified by Blockworks

share

Crypto users can soon provide their credit scores when making blockchain-based credit applications via major US credit bureau TransUnion.

TransUnion’s new crypto-focused service will provide individuals’ credit scores to blockchain dapps when they apply for DeFi loans. Their scores will be based on their credit histories.

“Credit scoring is an important tool for lenders to help mitigate risk regardless of the platform being used,” Jason Laky, TransUnion’s executive vice president of financial services, said in a statement

Blockchain data platform Spring Labs and Web3 identity solution provider Quadrata partnered with TransUnion on the initiative. In 2021, TransUnion led a $30 million investment in Spring Labs’ Series B.

Consumers can request their credit data from Chicago-headquartered TransUnion, which they will then choose to share with the relevant dapp. TransUnion says user privacy will be preserved in the process.

The partnership will allow DeFi lenders to access “critical information when making their lending decisions with confidence, ultimately minimizing their risk, and providing borrowers more opportunity for better terms,” Laky added.

TransUnion crypto push strengthens case for DeFi

TransUnion’s crypto move comes after one of worst sell-offs in history following the collapse of algorithmic stablecoin ecosystem Terra last year.

Roiled markets exposed lenders to unsecured loans threatening their balance sheets. This type of high-risk lending led to a wave of defaults that left several crypto companies anxious about the ensuing domino effect.

The transparent nature of DeFi could mitigate those concerns in future scenarios, proponents say.

“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, CEO of Spring Labs, in a statement.

“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.”

Credit scores in Web3 aren’t a new concept. Quadrata previously partnered with nine DeFi protocols including TrueFi and Cred Protocol to provide KYC and anti-money laundering risk scores. 

And last year, a credit risk assessment startup Spectral raised $23 million to build and refine its credit scoring network.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

Crypto is still on a mission — and still needs users

article-image

After its first phone drew jeers from a popular tech YouTuber, Solana Mobile delivered on its newest device

article-image

Markets strongly suspect that committee members will make the first interest rate cut of 2025

article-image

After four days of deliberation, the jury found Roman Storm guilty on Wednesday of one federal count

article-image

Pendle’s new platform transforms perp funding into tradable yield units — paving the way for a full-stack onchain fixed-income ecosystem

article-image

9.6% of crypto industry employees were paid in crypto, and most opted for USDC and USDT