Pencil Finance Completes $1 Million On-Chain Student Loan Cycle
Pencil Finance, a real-world asset protocol focused on education financing, said on September 3 that it had completed a $1 million student loan cycle entirely on-chain, covering capital deployment, borrower repayments and the return of funds with yield. The company described the transaction as the f
Pencil Finance, a real-world asset protocol focused on education financing, has completed a $1 million student loan cycle on-chain, marking the first of its kind to be fully completed through blockchain infrastructure. The financing, which took place on September 3, supported loans for over 6,600 students across 118 schools and universities in Southeast Asia, including the Philippines and Indonesia.
The initiative, co-incubated by Animoca Brands and HackQuest, utilized EDU Chain, a blockchain network developed for education-related applications. Pencil Finance described the transaction as an early test of whether blockchain-based financing can connect global investors with education lenders and borrowers underserved by conventional financial institutions.
The financing was divided into a senior tranche offering fixed returns and a junior tranche carrying variable returns and first-loss risk. Most of the capital was deployed through ErudiFi, an education financing provider that offers student loans and tuition funding in Southeast Asia.
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