Untangled Finance and Moody’s Ratings Launch Innovative On-Chain Credit Ratings
Untangled Finance, in collaboration with Moody’s Ratings, has successfully completed a groundbreaking Proof of Concept aimed at transitioning credit ratings onto the blockchain. This initiative involved testing a system designed to facilitate decentralized access to Moody’s extensive financial data.
The Proof of Concept was conducted on the Polygon Amoy Testnet, where Moody’s Ratings were seamlessly integrated into Credio, the risk oracle developed by Untangled Finance. By leveraging cutting-edge zero-knowledge proof (ZKP) technology, the system enabled the secure publication, updating, and withdrawal of credit ratings on-chain, all while safeguarding proprietary information.
According to Manrui Tang, co-founder of Untangled Finance, “Our oracle solution ensures real-time data visibility and immutability while preserving privacy.” This innovative approach not only enhances the security of credit ratings but also promotes greater transparency in risk assessment.
Transitioning credit ratings to the blockchain has the potential to revolutionize the way risk assessments are conducted, making them more transparent and efficient. It allows decentralized finance (DeFi) protocols and other blockchain-based applications to access real-time credit data without having to rely on centralized intermediaries, thereby enhancing the overall integrity of financial systems.
This initiative follows Untangled Finance’s strategic move to launch a $6 million private credit pool on Celo in 2024, as previously reported by CoinDesk. This pool will enable accredited investors to lend USDC in compliance with Luxembourg’s securitization regulations, further expanding the reach and capabilities of decentralized finance.
