Crypto Lender Divine Uses Iris-Scanning World ID to Disburse 30,000 Unsecured Loans
Main Idea
Crypto lender Divine uses World ID iris-scanning technology to disburse unsecured loans, primarily in Argentina, to individuals with limited access to traditional banking, despite high default rates and reliance on high interest rates for sustainability.
Key Points
1. Divine has issued around 30,000 short-term loans, mostly under $1,000, using USDC and World ID iris scans to verify borrower identity and prevent repeat borrowing.
2. First-time loan defaults are at 40%, but high interest rates (30%) and reclaimable Worldcoin tokens help offset losses.
3. The lending model is piloted in Argentina, where inflation has driven demand for alternative financial solutions.
4. Unsecured crypto lending is re-emerging post-2022 market crash, with platforms like 3Jane also testing uncollateralized loans.
5. Larger players like Coinbase and Tether dominate collateralized lending, while Wall Street firms cautiously explore crypto-backed financing.
Description
San Francisco-based crypto lender Divine Research is extending thousands of unsecured loans to borrowers across the globe, verified not through traditional IDs but with a scan of their eyes. The startup says it has issued around 30,000 short-term loans since December, the Financial Times reported Sunday. To identify borrowers, it uses World ID, the iris-scanning identity platform developed by OpenAI CEO Sam Altman’s crypto venture, Worldcoin. The loans, mostly under US$1,000, are paid out in USD...
Latest News
- OpenLedger Launches OpenChat AI, Teases Major News2025-07-28 13:27:58
- Revolut Restores Partial Crypto Services in Hungary After Regulatory Pause2025-07-28 13:06:00
- TRON Tops Ethereum in USDT Liquidity, Driving New Wave of Onchain Activity:CryptoQuant2025-07-28 12:43:39
- Breaking: SuperRare Staking Contract Hit by $730K Exploit—$RARE Token Unscathed2025-07-28 12:16:21
- Ethereum Products See $1.59B Weekly Inflows While Bitcoin Faces $175M Outflows2025-07-28 11:32:29