This Crypto Project Just Funded 1,000 Student Loans Entirely On-Chain

In brief

• Pencil Finance says a $1 million student-loan bundle completed its funding and repayment cycle on-chain.
• The financing contributed to loans supporting more than 6,600 students at 118 schools and universities.
• The company did not disclose interest rates, investor yields, defaults, or blockchain transaction records.

The Animoca Brands-incubated Pencil Finance says it has completed a $1 million student-loan cycle on-chain, from raising investor capital to recording repayments and returning the funds with yield.

Education-financing company ErudiFi issued the loans, and Pencil Finance, a decentralized lending protocol, packaged them as an on-chain private-credit investment, allowing funders to supply capital and monitor repayments through blockchain records.

Pencil Finance called it the first fully on-chain student-lending cycle, a claim that could not be independently verified. Animoca Brands, Open Campus, and NewCampus funded the bundle in July 2025.

“The protocol deployed loans in the aggregate amount of US$1 million to borrowers, serviced through repayments, and returned the capital to the bundle’s funders with yield, with every step recorded transparently on blockchain,” Animoca Brands wrote on X.