Untangled Finance Integrates Moody’s Credit Scores On-Chain

In a groundbreaking move, Untangled Finance has partnered with Moody’s Ratings to transition credit ratings onto the blockchain, enabling decentralized access to crucial financial data. This innovative proof-of-concept was executed on the Polygon Amoy Testnet, where Moody’s Ratings were seamlessly integrated into Credio, Untangled Finance’s advanced risk oracle.

Understanding the Integration of Credit Ratings

The integration of credit ratings on-chain represents a significant shift in how financial data is accessed and utilized. By employing zero-knowledge proof (ZKP) technology, the system allows for the secure publication, updating, and withdrawal of credit ratings on the blockchain while safeguarding proprietary information. This means that sensitive data can be shared without compromising the privacy of the entities involved.

Real-Time Data Visibility and Immutability

According to Manrui Tang, co-founder of Untangled Finance, “Our oracle solution ensures real-time data visibility and immutability while preserving privacy.” This statement underscores the importance of transparency in financial transactions, particularly in the rapidly evolving world of decentralized finance (DeFi).

The Impact on Risk Assessment

Bringing credit ratings on-chain could revolutionize risk assessment processes. It allows DeFi protocols and other blockchain-based applications to integrate real-time credit data without relying on centralized intermediaries. This shift not only enhances efficiency but also fosters a more transparent financial ecosystem.

Future Prospects for Untangled Finance

This initiative follows Untangled Finance’s ambitious plans for 2024, which include launching a $6 million private credit pool on Celo. This private credit pool will enable accredited investors to lend USDC under Luxembourg securitization rules, further expanding the scope of decentralized finance.

About the Team Behind the Innovation

Sam Reynolds, a senior reporter based in Asia, has been instrumental in covering this development. He was part of the CoinDesk team that won the prestigious 2023 Gerald Loeb award in the breaking news category for their comprehensive coverage of the FTX collapse. Before joining CoinDesk, Reynolds worked as a reporter with Blockworks and served as a semiconductor analyst with IDC.

Conclusion

The collaboration between Untangled Finance and Moody’s Ratings marks a pivotal moment in the integration of traditional financial metrics with blockchain technology. As the DeFi landscape continues to evolve, such innovations will play a crucial role in shaping the future of finance, making it more accessible, transparent, and efficient.

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