Untangled Finance and Moody’s Ratings Proof of Concept

Untangled Finance and Moody’s Ratings have completed a proof of concept (PoC) to move credit ratings on-chain by testing a system for decentralized access to Moody’s financial data.

The PoC, 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 for the secure publication, updating, and withdrawal of credit ratings 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 enhance the transparency and efficiency of risk assessments, enabling DeFi protocols and other blockchain-based applications to integrate real-time credit data without reliance on centralized intermediaries.

This development follows Untangled Finance’s 2024 initiative to launch a $6 million private credit pool on Celo, allowing accredited investors to lend USDC under Luxembourg securitization rules.