Divine Research Issues 30,000 Unbacked Crypto Loans Using World ID Verification

Divine Research's issuance of 30,000 unsecured loans highlights the growing trend in crypto lending, particularly for underserved borrowers, as institutional interest grows.

BTC
USDC

Summary

Divine Research has issued approximately 30,000 unsecured short-term loans under $1,000 since December, utilizing iris-scanning technology for borrower verification. Targeting underbanked individuals, the loans are disbursed in USDC with interest rates of 20% to 30% and a default rate around 40%. Founder Diego Estevez emphasized the focus on everyday individuals, marking a shift in the lending landscape as institutional interest in crypto-backed loans increases.

Terms & Concepts
  • USDC: A stablecoin pegged to the US dollar, designed to maintain a stable value in the cryptocurrency market.
  • microfinance: Financial services provided to low-income individuals or those without access to typical banking services, often involving small loans.
  • uncollateralized loans: Loans that do not require the borrower to provide collateral, increasing risk for lenders.