Pencil Finance says it funded 1,000 student loans on-chain

Pencil Finance says it completed a $1 million student-loan cycle entirely on-chain. The cycle covered raising investor capital, issuing loans, recording repayments, and returning capital with yield. ErudiFi issued the loans and packaged them as an on-chain private-credit investment. Animoca Brands, Open Campus, and NewCampus funded the bundle in July 2025. Pencil Finance called the cycle the first fully on-chain student-lending cycle, but that claim could not be independently verified. ErudiFi deployed most of the bundle through student loans and tuition financing across Southeast Asia. The financing supported more than 6,600 students at 118 institutions over 12 months. About 1,050 students received funding directly attributable to Pencil Finance. Investors were divided into a senior tranche with fixed returns and repayment priority. A junior tranche offered variable returns and absorbed the first losses from defaults. The company did not disclose interest rates, investor yields, defaults, or blockchain transaction records. Across ErudiFi's portfolio, half of borrowers are women. The company says 93% of borrowers come from lower-income households. The company says 52% are using formal credit for the first time.