Animoca-backed Pencil Finance issues first ever blockchain-based student loans
Pencil Finance raises on-chain capital for student loans, issuing $1 million in real-world loans.
Real-world assets are increasingly finding applications in real life. On Thursday, July 10, Pencil Finance, the student loan real-world asset protocol, issued its first-ever student loan capital raised entirely on-chain.
The $1 million in loan capital, raised on the Pencil Finance platform, will be used to expand educational opportunities in emerging markets. The focus will be on Asia, including the Philippines and Indonesia. Capital will be distributed through ErudiFi, which will then issue student loans for tuition funding to university students.
At the same time, users who provided the capital will earn yields based on student loan repayments. Specifically, $750,000 of the capital will offer a fixed 15% annual percentage yield. Another $250,000 will offer variable APY with first-loss risk.
Blockchain to expand educational opportunities
The platform was launched with support from Hong Kong-based blockchain conglomerate Animoca Brands. Yat Siu, co-founder and executive chairman of the firm, believes that Pencil Finance demonstrates the real-world, positive use cases for blockchain.
This sentiment was echoed by Frank Li, co-founder of Pencil Finance, who stated that blockchain can have a meaningful social impact. The goal, he explained, is to make education across the world more accessible.
Animoca Brands is a game developer, NFT platform, and venture capital firm focused on crypto businesses. The company funds a large number of crypto-based startups, especially in Asia.
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