$1M Onchain Student Loan Cycle Completed in Southeast Asia

Pencil Finance, a blockchain-based lending platform, has successfully completed a $1 million onchain student loan cycle in Southeast Asia. This milestone marks a significant achievement for the company as it aims to provide accessible and transparent financial services to students who traditionally lack access to funding options.

The cycle, which was supported by Animoca Brands, Open Campus, and New Campus, involved 6,600 students from 118 institutions across Southeast Asia. Of these students, approximately 1,050 received direct financing under the cycle, with 50% of borrowers being women and 93% coming from poorer backgrounds.

Pencil Finance's use of blockchain technology allowed for a clear view of the loan cycle, from allocation to repayment. The company allocated the $1 million to fund students before the end of the repayment cycle, with repayments by borrowers used to repay the original investors in the bundle. This innovative approach highlights the potential of tokenized real-world assets in lending markets.