San Francisco-based crypto lender Divine Research is pushing the boundaries of decentralized finance, issuing tens of thousands of unsecured loans globally without a single credit check or government-issued ID.
Instead, identity verification hinges on an iris scan, powered by Worldcoin’s World ID platform.
Since launching the initiative in December, Divine Research has extended approximately 30,000 short-term loans, most under $1,000, according to a report by Financial Times. All loans are disbursed in USDC, a dollar-backed stablecoin issued by Circle, and primarily target borrowers in underserved markets with limited access to traditional banking.
Crypto lenders dial up risk with ‘microfinance on steroids’ https://t.co/6GgzJZROtm
— Financial Times (@FT) July 27, 2025
The company leverages Worldcoin’s biometric authentication system, requiring users to scan their eyes via a proprietary orb device. This process, it says, ensures borrowers cannot open multiple accounts or evade repayment through duplicate identities.
“This is microfinance on steroids,”
said Divine Research founder Diego Estevez.
“We’re loaning to average folks like high school teachers, fruit vendors, anyone with internet access.”
The lending model has been piloted in Argentina, where soaring inflation has driven demand for access to stable-dollar assets. While many borrowers had no prior exposure to crypto, the platform has seen rapid adoption due to its minimal barriers to entry.
Default rates on first-time loans currently sit around 40%, but the platform maintains profitability through fixed interest rates ranging from 20% to 30% and the integration of reclaimable Worldcoin tokens. The risk is offset by yields offered to liquidity providers and individual depositors who fund the loans in exchange for returns.
“We’ve engineered the system so that, after factoring in defaults and rates, providers still walk away with a profit,”
Estevez said.
In parallel, traditional finance is also moving toward crypto-backed credit products. JPMorgan Chase is reportedly planning to roll out lending services backed by Bitcoin and Ethereum holdings in 2026, according to sources cited by the Financial Times. If confirmed, the move would place the bank among the first major U.S. institutions to formally integrate crypto assets into its lending operations.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
