Moody’s and Untangled Finance Bring Credit Ratings On-Chain with Zero-Knowledge Tech

Untangled Finance and Moody’s Ratings have successfully tested a proof-of-concept (PoC) to bring credit ratings on-chain, enhancing transparency and accessibility in decentralized finance (DeFi). The test was conducted on the Polygon Amoy Testnet, integrating Moody’s credit ratings into Untangled Finance’s risk oracle, Credio.

Using zero-knowledge proof (ZKP) technology, the system ensures credit ratings are securely published, updated, and withdrawn on-chain while preserving data privacy. This innovation enables real-time risk assessment without exposing proprietary information. “Our oracle solution ensures real-time data visibility and immutability while preserving privacy,” said Manrui Tang, co-founder of Untangled Finance.

On-chain credit ratings could revolutionize DeFi by reducing reliance on centralized intermediaries, improving efficiency, and increasing trust. DeFi protocols and blockchain applications will be able to access Moody’s ratings seamlessly, allowing for better risk management.

This initiative follows Untangled Finance’s 2024 launch of a $6 million private credit pool on Celo, which enabled accredited investors to lend USDC under Luxembourg securitization regulations. The company continues to push the boundaries of decentralized credit infrastructure, bringing institutional-grade financial data to blockchain ecosystems.

By leveraging blockchain and ZKP, Moody’s and Untangled Finance are paving the way for more secure and efficient financial services, aligning traditional finance with DeFi innovations.