S&P Global and Coinbase Ventures have joined a $6 million funding round for Credora, a startup that has built privacy-preserving technology for real-time credit analytics.
Credora, which works with the DeFi and CeFi sectors, says that information asymmetry has been one of the root causes of recent credit events like Three Arrows Capital and Alameda, with borrowers unwilling to share sensitive information and lenders forced to rely on reputation and relationships when extending credit.
The firm says it addresses this by providing lending infrastructure and systematic credit ratings for private credit markets. It uses privacy-preserving technology to improve lenders’ ability to properly evaluate credit risk in real-time.
The firm has already facilitated over $1 billion in uncollateralised loans across more than 100 borrowers and lenders.
Darshan Vaidya, CEO, Credora, says: "Credora solves the information asymmetry problem by using private computation techniques on real-time data, ensuring borrowers continuously validate their creditworthiness while maintaining the privacy of their sensitive information."