Credora and Credit Coop Partner to Grow the Onchain Credit Market

The onchain credit market has seen significant growth over the past year. This has been driven by an increase in product offerings, further adoption of stablecoins in payments and remittances, and new methods of leveraging smart contracts. Building on this progress, Credora and Credit Coop are thrilled to announce a strategic partnership to further expand the onchain institutional private credit market. By integrating Credora’s advanced credit assessment technology with Credit Coop’s secured lending infrastructure, this collaboration fosters a secure, efficient, and transparent onchain credit ecosystem.

About Credit Coop

Credit Coop has developed an innovative secured lending solution that leverages blockchain technology to automate loan management and cash flow financing for cryptonative businesses. This advanced infrastructure goes beyond using blockchain as a simple loan ledger; it transforms it into a powerful tool for securing and managing payment flows. At the heart of this system is the novel Spigot smart contract, which escrows borrowers’ onchain cash flows, converting them into transparent, leverageable assets used to secure debt and automatically repay lenders.

The unique aspect of Credit Coop’s technology lies in its ability to provide lenders with a priority claim on cash flows, programmatically set by the parameters of an onchain agreement. This approach offers multiple benefits to both lenders and borrowers. For lenders, recourse is enforced onchain in a programmatic manner. As a result of this increased security, borrowers can access larger loans at lower interest rates. Furthermore, borrowers can reduce their dependence on capital-inefficient lending approaches such as overcollateralized loans.

Credit Coop’s solution enables entities to leverage their cash flows for financing while maintaining operational flexibility. The system ensures that borrowers programmatically regain full access to their revenue after loan repayment, striking a balance between securing loans and maintaining business autonomy. By providing this infrastructure, Credit Coop enables a wide range of use cases in cash flow financing, transforming how blockchain-based businesses access and manage capital.

Credora’s Role in the Partnership

Credora conducts comprehensive credit assessments on Credit Coop borrowers. These assessments are in the form of detailed credit reports and credit metrics. These can be distributed via API, dynamic reports, or distributed onchain to be consumed directly by Credit Coop’s smart contracts. Credit metrics include credit scores, ratings agency equivalent benchmarks, and an implied probability of default, allowing lenders to make risk-based decisions.

The detailed and dynamic reports can be easily shared via secure links, enabling borrowers to selectively permission detailed information demonstrating their creditworthiness.

By integrating Credora’s onchain credit assessments, Credit Coop enables borrowers and lenders to set transparent and dynamic rules-based loan terms, linking borrowing terms to the credit quality of the loan. Moreover, lenders can diversify across multiple pools in a programmatic manner, with smart contracts able to capture risk-reward preferences and construct a portfolio accordingly.

Chris Walker, Co-Founder and CEO at Credit Coop added, “Credora’s deep expertise in secured lending perfectly aligns with Credit Coop’s vision for onchain capital markets. Their independent third-party analysis provides lenders with a clear understanding of risks, enabling us to offer data-driven, and truly transparent lending.”

Trusted by Innovative Organizations

Rain is one of the first borrowers to leverage Credit Coop’s infrastructure and Credora’s onchain ratings to attract capital. With $16M+ deployed, our partnership is setting new standards for onchain credit. Our mission is to redefine how crypto businesses access capital, propelling the entire industry forward.

If you’re an institutional borrower seeking a credit assessment, or a capital allocator interested in exploring novel secured lending opportunities to diversify your portfolio, please contact us at credora.io or creditcoop.xyz.