Untangled Finance in collaboration with Moody’s Ratings has successfully carried out a Proof of Concept aimed at transitioning credit ratings onto the blockchain, thereby facilitating decentralized access to Moody’s financial information.
Executed on the Polygon Amoy Testnet, this proof of concept effectively integrated Moody’s Ratings within Untangled Finance’s risk oracle, Credio. Employing zero-knowledge proof (ZKP) technology, the system enabled the secure publishing, updating, and removal of credit ratings on-chain while safeguarding proprietary data.
“Our oracle solution guarantees real-time data visibility and immutability while ensuring privacy,” stated Manrui Tang, co-founder of Untangled Finance, in a press statement.
Introducing credit ratings on-chain promises to enhance the transparency and efficiency of risk assessments, allowing decentralized finance protocols and other blockchain applications to utilize real-time credit data without depending on centralized intermediaries.
This development follows Untangled Finance’s initiative to establish a $6 million private credit pool on Celo in 2024, which permitted accredited investors to lend USDC under Luxembourg’s securitization regulations, as previously reported.