Led by Blockchain Capital, Teller Raises About $7 Million to Bring Unsecured Lending to DeFi.

Teller announced raising $6.8 million for expanding its protocol integrations with third parties for launching crypto loan marketplaces.

Bishal Kumar Chanda2 min read
Led by Blockchain Capital, Teller Raises About $7 Million to Bring Unsecured Lending to DeFi.

Teller, a DeFi protocol created for cryptocurrency lending and borrowing, announced raising $6.8 million. The acquired funds will expand Teller’s integrations with third parties for launching crypto loan marketplaces. Blockchain Capital led the funding round, and it saw participation from Toyota Ventures, Templeton, Franklin, Signum Capital and many more industry giants. DeFi protocols account for more than $200 billion in total locked volume and are growing even more every day. However, one of the main obstacles for DeFi is overcollateralized loans.

The Teller protocol will allow the users to borrow and lend cryptocurrencies without any collateral, and it’ll be as simple as using a credit card. The collateral-free loans can open a whole new market within the DeFi segment. It is a way of traditional finance features like data-driven, unsecured borrowing and lending of cryptocurrencies. Appending off-chain data to a loan request will give DeFi lending all the facilities most conventional financial institutions provide.

Teller’s new protocol makes unsecured loans possible by allowing users to connect their bank accounts and evaluate their banking history. Users can also reduce their interest rates significantly based on their banking history and creditworthiness. This is similar to what TransUnion is trying to achieve by enabling crypto lenders to check consumer credit scores. When crypto lending platforms like BlockFi and Nexo are revising their lending terms to abide by regulators, Teller’s protocol can help bridge the gap between the crypto and traditional financial world. However, before investing in any platform or protocol, it is worth comparing all the best alternatives.

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