$1 Million Student Loan Cycle Completes On-Chain, Supports Thousands of Students
Pencil Finance, an Animoca Brands-incubated decentralized lending protocol, has successfully completed a $1 million student-loan cycle entirely on-chain. This milestone marks the first fully on-chain student-lending cycle, according to Pencil Finance.
The loans were issued by ErudiFi and supported over 6,600 students at 118 schools and universities across Southeast Asia, including Indonesia and the Philippines. The bundle was funded in July 2025 by Animoca Brands, Open Campus, and NewCampus.
Pencil Finance packaged the loans as an on-chain private-credit investment, allowing funders to supply capital and monitor repayments through blockchain records. Investors were divided into a senior tranche offering fixed returns with repayment priority and a junior tranche providing variable returns while absorbing potential losses from defaults.