Consumer credit reporting company TransUnion will enable consumers to give crypto lenders access to their personal credit data in a move that could greatly expand the possibilities of lending in the digital asset market.
- TransUnion is offering this facility through security firm Spring Labs’ ky0x digital passport, the Wall Street Journal reported Wednesday.
- Cryptocurrency investors could now receive better interest rates when borrowing money thanks to lenders being able to judge their risk profile based on credit data.
- Furthermore, lenders could now issue loans without requiring any collateral at all depending on the customer’s creditworthiness. At present, investors must put up crypto assets such as bitcoin as collateral.
- Users register with the digital passport to obtain anti-money laundering and know-your-customer verification that can be attached to their digital wallets.
- TransUnion and Spring Labs expect consumers’ credit data to be available on the passport by the end of the year, according to the report.
Read more: Crypto Lender Ledn Raises $70M in Series B Round, Readies Bitcoin-Backed Mortgage Product