Untangled Finance and Moody’s Ratings have successfully completed a Proof of Concept to bring credit ratings onto the blockchain by experimenting with a system that enables decentralized access to Moody’s financial data.
The proof-of-concept, carried out on the Polygon Amoy Testnet, incorporated Moody’s Ratings into Credio, Untangled Finance’s risk oracle. By utilizing zero-knowledge proof (ZKP) technology, the system allowed for secure publication, updates, and withdrawals of credit ratings on-chain while safeguarding proprietary information.
“Our oracle solution ensures real-time data visibility and immutability while maintaining privacy,” stated Manrui Tang, co-founder of Untangled Finance, in a press release.
Bringing credit ratings onto the blockchain has the potential to enhance transparency and efficiency in risk assessment, enabling DeFi protocols and other blockchain-based applications to incorporate real-time credit data without depending on centralized intermediaries.
This development comes on the heels of Untangled Finance’s recent launch of a $6 million private credit pool on Celo in 2024, as reported by CoinDesk. This initiative allowed accredited investors to lend USDC under Luxembourg securitization regulations.