Pencil Finance says it completed a $1 million student-loan funding and repayment cycle on-chain, from raising investor capital through returning principal and yield to funders. Education-financing company ErudiFi issued most of the loans and tuition financing across Southeast Asia, including Indonesia and the Philippines. The portfolio supported more than 6,600 students at 118 schools and universities over 12 months, including about 1,050 students funded directly through Pencil Finance. Investors were split between a senior tranche with fixed returns and repayment priority and a junior tranche with variable returns that absorbed initial default losses. The protocol operates on EDU Chain, an education-focused Ethereum-based network built using Arbitrum Orbit. Pencil Finance described the transaction as the first fully on-chain student-lending cycle, although that claim could not be independently verified. The company did not disclose interest rates, investor yields, defaults or blockchain transaction records.