The company disclosed that a student loan portfolio worth $1 million has completed a full on-chain cycle, from fundraising, lending, repayment records to the return of principal and distribution of earnings. This project packages the loans issued by the education financing company ErudiFi into on-chain private credit products, which operate on EDU Chain.
Lending funds to Southeast Asian education
According to the company's disclosure, this funds are mainly used for student loans and tuition financing in Southeast Asia, covering markets such as Indonesia and the Philippines. Pencil Finance stated that within 12 months, the relevant capital supported over 6,600 students from 118 schools and universities, among which approximately 1,050 people's financing can be directly attributed to this on-chain asset package.
ErudiFi is responsible for loan disbursement, while Pencil Finance is in charge of packaging the related claims and introducing them to investors. The company states that investors can view the repayment progress through the on-chain records.
Adopt a hierarchical structure to absorb default risks
This asset package adopts a layered design: the senior tranche offers a fixed return and enjoys priority in compensation; the junior tranche has a floating return, while also bearing the losses in case of default in the first round. The institutions that participated in the funding include Animoca Brands, Open Campus, and NewCampus. The three parties provided funds for this asset package in July 2025.
Pencil Finance refers to it as the first "fully on-chain" student loan cycle. However, reports mention that this claim cannot be independently verified at present.
Key data has not yet been disclosed.
Although the company emphasizes the full process of moving to the blockchain, it has not made public the interest rate of this asset package, the actual returns for investors, or any information on defaults. Nor has it disclosed the specific transaction records on the blockchain. At this stage, it is still difficult for outsiders to independently assess the risk-return performance of this product based on this information.
Pencil Finance was co-incubated by Animoca Brands and the developer community HackQuest. The protocol is deployed on EDU Chain. This network is an Ethereum ecosystem chain tailored for educational scenarios and is built upon Arbitrum Orbit.
Additional information:According to ErudiFi, approximately half of the borrowers in its overall loan portfolio are women, 93% come from low-income families, and 52% are using formal credit services for the first time.
