TransUnion, a prominent consumer credit reporting firm in the United States. Which is, announced a cooperation with security firm Spring Labs to introduce personal credit score reports into the crypto financing market. That’s, why according to the Wall Street Journal.
TransUnion wants to provide this service to consumers through Ky0x Digital Passport. Which is, a solution built by Spring Labs to bridge the gap between web 3.0 applications. Then, and custom off-chain data, according to the report.
The digital passport provides users with identity verification badges such as know-your-customer (KYC). Then, and anti-money-laundering (AML) while keeping personal information private. So, Before the end of 2022, users will be able to link their credit score reports to their digital wallets.
According to both organizations, consumers of TransUnion will have a better chance of acquiring better credit rates now that the passport is in place.
Credit ratings are also included on the digital passport for blockchain enterprises to access. That’s, which introduces creditworthiness checks and might pave the road for zero-collateral loans.
Both parties think that by lowering the risks involved, this step will improve opportunities in the digital asset lending market while also promoting greater confidence between lenders and customers.
TransUnion’s President of U.S. Markets and Consumer Interactive, Steve Chaouki, commented on the announcement, saying that the company recognizes the DeFi space’s growth potential. As a result, it sees this as the ideal time to give people the tools they need to properly interact with a wider range of financial services.
The alliance, according to Chaouki, increases market rivalry and encourages enterprises to develop more user-centric products while keeping compliant with regulatory standards.
The news is the most recent development concerning both organizations. Spring Labs raised $30 million in funding in 2021 to expand access to the company’s data-sharing network. TransUnion was the lead investor in the round.