This Crypto Project Just Funded 1,000 Student Loans Entirely On-Chain
Pencil Finance says it completed a $1 million student-loan cycle fully on-chain, from investor funding to repayment and capital return with yield. ErudiFi originated the loans, which were packaged as an on-chain private-credit bundle on EDU Chain, an Ethereum-based network built with Arbitrum Orbit. Animoca Brands, Open Campus, and NewCampus funded the July 2025 bundle. The cycle used senior and junior tranches, with the senior tranche getting priority repayment and fixed returns, while the junior tranche took first losses and variable returns. ErudiFi said the capital supported student loans and tuition financing across Southeast Asia, reaching more than 6,600 students at 118 institutions over 12 months, including about 1,050 students directly tied to Pencil Finance. Pencil Finance argues that putting the lending process on-chain creates transparent, auditable credit records that can help attract more capital to emerging-market education lending.
