The post Pencil Finance Completes $1M Onchain Student Lending Cycle Across Southeast Asia appeared on BitcoinEthereumNews.com.
Pencil Finance has completed a $1 million onchain cycle of student lending, financing 6,600 students in 118 institutions in Southeast Asia. The cycle had 1,050 borrowers directly receiving the funds and investment from Animoca Brands, Open Campus, and New Campus. Pencil Finance completes a $1 million on-chain student lending cycle in Southeast Asia. The milestone helps link the blockchain-based lending services to students who traditionally do not have access to financing options. Pencil provided the funds as a lender and managed to track the whole lending cycle on-chain. The borrowers paid back their debts, which helped the platform to repay the capital and interest to the original investors. $1M Loan Cycle Benefited 6,600 Students In all, the loan cycle helped around 6,600 students from 118 different institutions in Southeast Asia. Approximately 1,050 students received direct financing under the cycle. Moreover, Pencil Finance specifically designed the loan cycle to support students who lacked access to traditional financing. 50% of the borrowers were women. Students from poorer backgrounds made up 93% of the borrower population. These statistics show how the loan cycle targeted students with limited access to financing options. However, the use of blockchain technology gave a clear view of the loan cycle. The company claimed that this loan cycle was their first onchain student loan cycle. Pencil referred to it as the first-ever onchain student lending cycle on the blockchain networks. Financing Structure Supported by Animoca Brands July 2025 saw the participation of Animoca Brands, Open Campus, and New Campus in the funding of the loan bundle. In the structure of the loan bundle, senior and junior tranches were used to segregate returns and risks. The senior tranche provided fixed returns for participating funders, while the junior tranche had variable returns and first-loss risk. Pencil then allocated the $1 million…