Pencil Finance announces $10M for student loan financing backed by Animoca Brands & Open Campus

0
8KB

Pencil Finance, the student loan real-world-asset (RWA) protocol on EDU Chain that is co-incubated by Animoca Brands and HackQuest, announced Wednesday that Open Campus and Hong Kong-based gaming firm Animoca Brands have deployed $10 million in liquidity as loan collateral to facilitate DeFi student loans on the Pencil Finance platform.

Pencil Finance is a decentralized lending protocol designed to bring student loan financing on-chain, transforming how student debt is serviced. It connects global investors with trusted student loan originators through tokenized loan bundles, the company said in a statement.

EDU Chain is a Layer 3 blockchain on Arbitrum Orbit that is designed for consumer-facing education apps and on-chain education finance (EduFi). EDU Chain is powered by the EDU token (EDU) which is listed on Binance, KuCoin, Gate.io, Bithumb, MEXC, Bitmart, and various other exchanges.

Open Campus, which is the foundation behind EDU Chain, and Animoca Brands have contributed $10 million as liquidity to Pencil Finance to be used as loan collateral. The goal is to expand access to education financing through blockchain technology.

Recent policy changes in the U.S. could put millions of borrowers at risk of defaulting on their student loans, highlighting the urgent need for accessible, transparent, and efficient financing solutions for the student loan market, which is estimated to be worth around $3 trillion globally.

Yat Siu, co-founder and executive chairman of Animoca Brands, said, “Blockchain is redefining how education is funded and developed. By bringing student loans on-chain, this initiative seeks to boost transparency, efficiency, and Web3 adoption for potentially hundreds of millions of students globally, while also increasing financial literacy. We believe this will have very significant implications for the US$3 trillion student loan market.”

Frank Li, co-founder of Pencil Finance, said, “Blockchain technology allows us to reimagine student lending from the ground up. By bringing loans on-chain, we deliver transparency, efficiency, and access at a global scale, helping students everywhere unlock new educational opportunities.”

Harry Zhang, co-founder and CMO of HackQuest, said: “This milestone demonstrates the real-world impact of blockchain in education. On-chain loans empower students and open new opportunities for investors.”

Through Pencil Finance’s student loan RWA protocol, whitelisted users can provide liquidity to loan pools. Whitelisted users can choose to deploy capital to a Senior Tranche or a Junior Tranche for higher returns with first-loss risk. Pencil Finance enables loans to be deployed, and repayments to be managed, transparently on-chai

Pencil Finance issued its first loan this week; the recipient is HackQuest, which will use the loan proceeds to incentivize student developers learning about EDU Chain on the HackQuest platform, it added.

 

#DeFiEducation #BlockchainFinance #StudentLoans #RWAFinance #EduChain

Patrocinado
Pesquisar
Patrocinado
Categorias
Leia mais
Causes
Malaysia’s Gamuda partners landowners to co-develop RE projects in Central Tasmania
Malaysia-based engineering, property and infrastructure firm Gamuda said its wholly owned...
Por Ifvex 2025-07-03 02:35:19 0 4KB
Networking
How AI combats business insurance fraud
Fraudulent claims are increasing yearly, driving up premiums for honest customers and placing...
Por Ifvex 2025-01-28 00:07:42 0 10KB
Networking
Ample Transfers receives IPA from MAS to expand regulated payment services in Singapore
Ample Transfers, a Singapore-based provider of remittance and money-changing services, has...
Por Ifvex 2025-04-17 07:37:41 0 7KB
Networking
Singapore’s Elev8 Venture Partners leads $50M funding round in smallcase
Smallcase, India’s largest model portfolios platform, has raised $50 million in its Series...
Por Ifvex 2025-03-31 02:11:31 0 7KB
Networking
QBO Innovation: regional growth booming for Philippine startups in 2024
The Philippine startup ecosystem is experiencing significant growth, with regional hubs expanding...
Por Ifvex 2025-04-01 06:32:18 0 9KB
Ifvex https://ifvex.com