Pencil Finance Completes First On-Chain Student Loan Cycle

Pencil Finance has completed its first fully on-chain student loan cycle using $1 million in deployed capital. The program supported about 6,600 students across 118 schools and universities in Southeast Asia.

The funding was structured into senior (fixed returns) and junior (variable returns with first-loss risk) tranches. Roughly 1,050 students received direct funding, with 50% of borrowers female and 93% from lower-income households.

Pencil Finance claims the completed cycle is the first-ever 'fully on-chain lending cycle' that finances student loans with activity transparently captured on a blockchain network.