CHICAGO -

There’s now another path for users to leverage TransUnion information.

Last week, TransUnion announced its off-chain credit data will be made available for the first time on public blockchain networks via Spring Labs’ ky0x Digital Passport.

The companies explained the move is designed to enable better-informed, privacy-preserving DeFi and Web3 applications — internet applications based on public blockchains. It’s all geared for “unlocking a new world” of permissioned and reputation-based products and features.

By making credit data — which experts said is widely accepted as the standard to assess credit risk in traditional finance — available on blockchain, Spring Labs said it is kick-starting its ky0x Digital Passport identity system.

Ky0x Digital Passport can allow users to provide information about themselves in order to access permissioned smart contract applications while preserving the privacy of their off-chain identity.

With access to ky0x’s Digital Passport’s data, DeFi and Web3 applications can build increasingly competitive financial products that only ky0x’s open and continuously growing system can enable.

“We want to foster greater trust (and adoption) in DeFi products and services, so we created the tool suite that makes available off-chain reputation (e.g. KYC/AML, credit) data on public blockchain that preserves the user’s privacy and anonymity,” Spring Labs chief executive officer John Sun said in a news release.

“With TransUnion’s identity and credit data, we’re providing the first building block to bringing reputation on-chain, in turn helping create a more efficient DeFi lending environment that can offer better loans, more available liquidity, and ultimately accelerate adoption in the space,” Sun continued.

In addition to credit data, the ky0x Digital Passport can enable any Web3 application or smart contract to access off-chain identity and compliance information.

Spring’s research and development of privacy-preserving technologies have led to a system that can allow its users to have control of their data while preserving their privacy and anonymity.

Users can opt in and provide permission to have their credit data attached to their wallet, and never need to reveal their identity and personally identifiable information when affirming their reputation and credit history to DeFi applications and services.

“We believe in the growth potential of DeFi. Providing credit and identity data on-chain is a huge step towards improving the financial products available in the space,” said Steve Chaouki, president of U.S. markets and consumer interactive at TransUnion.

“Working with Spring’s ky0x, we now have a solution for users to control and share their data on blockchain in a privacy-preserving way, enabling them to safely interact with a broader set of financial products,” Chaouki continued.

With VantageScore credit scores on-chain, users can improve the rates that they’re being offered by DeFi lenders, and DeFi lenders can reduce their own risk, all while increasing their available liquidity.

Because of its state-of-the-art model architecture, market-leading predictive performance, and its inclusive ability to provide a score for nearly the entire adult U.S. population, VantageScore is widely used by the most innovative financial technology providers and it is a trusted risk management tool for more than 2500 financial institutions in the United States

“Enabling access to an industry-standard, trusted credit risk score like VantageScore on-chain and in a consumer permissioned, anonymous way opens the door to greater growth and financial inclusion in the DeFi space,” said Liz Pagel, senior vice president and consumer lending business leader at TransUnion.

“Paired with ky0x’s AML and KYC capabilities, DeFi lenders can transact with confidence at lower rates, potentially paving the way for lending without the over-collateralization that is standard today,” Pagel went on to say.

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