DeFi Loan Marketplace Goldfinch Nets $25M for Its Credit Protocol

Goldfinch, Series A, investment, DeFi

Decentralized credit protocol Goldfinch has raised $25 million in a Series A extension round led by Andreessen Horowitz, per a Thursday (Jan. 6) report from CoinDesk.

Goldfinch is an open market for loans without collateral, making use of a loan underwriting process and extending credit lines to lending businesses. Those businesses can then draw stablecoins from the Goldfinch pool and deploy them to local borrowers.

Goldfinch allows for access to global capital, though it leaves the loan origination and servicing to the lending companies.

Investors are able to put crypto into the Goldfinch pool and can earn yield, and when lending businesses make interest payments back to Goldfinch, the money is disbursed to every investor.

The company has seen growth of its outstanding loan volume from $250,000 from a year ago into over $38 million. The capital has been used for several things, including Kenyan motorcycle taxis and Brazilian small businesses.

In other decentralized news, Alchemy Pay has been integrating data feeds from Chainlink, giving users the ability to buy cryptocurrency on decentralized exchanges (DEXs) and get loans on decentralized finance lending platforms.

See also: Alchemy Integrates Chainlink for Enhanced DEX Trading, DeFi Borrowing

With the move, users can buy and borrow directly from digital wallets with Alchemy Pay’s token ACH. This integrates price feeds from Chainlink, and users are more assured of getting fair market exchange rates while buying assets from their wallets on DEXs.

Asset prices are not available natively on the blockchain. That means there needs to be another tool to capture the information off-chain, delivering it for users involved with various crypto transactions.

“It is crucial to the success of our payment gateway solution that the value of ACH is accurately shared throughout the ecosystem,” said Alchemy Pay CEO John Tan. “The accuracy of Chainlink Price Feeds is underpinned by the robust technology Chainlink has deployed to protect against downtime and manipulation.”