Untangled Finance and Moody’s Ratings have completed a Proof of Concept to move credit ratings on-chain by testing a system to allow for decentralized access to Moody’s financial data.
The proof-of-concept, conducted on the Polygon Amoy Testnet, integrated Moody’s Ratings into Credio, Untangled Finance’s risk oracle. Using zero-knowledge proof (ZKP) technology, the system allowed credit ratings to be securely published, updated, and withdrawn on-chain while protecting proprietary information.
“Our oracle solution ensures real-time data visibility and immutability while preserving privacy,” said Manrui Tang, co-founder of Untangled Finance, in a release.
Bringing credit ratings on-chain could make risk assessment more transparent and efficient, allowing DeFi protocols and other blockchain-based applications to integrate real-time credit data without reliance on centralized intermediaries.
This follows Untangled Finance’s 2024 move to launch a $6 million private credit pool on Celo, as CoinDesk previously reported, which allowed accredited investors to lend USDC under Luxembourg securitization rules.