Divine Research He has already issued over 30,000 unsecured loans in USDC cryptocurrency from San Francisco, using the revolutionary scanning technology for the iris scanning. This can be a breakthrough in access to loans for millions excluded from a traditional banking system.
The startup from San Francisco changes the face of finance thanks to the biometric technology Altman herself
The Startup from the United States came up with an extremely interesting way to use the scanning technology of the iris of the eye, which was first presented by the Worldcoin project. Divine Research today gives crypto-credits at Circle Stablecoin.
Key data:
- 30,000 loans from December 2024
- Amounts below USD 1000 in a stable USDC cryptocurrency
- 40% Insolvency index at 20-30% interest rate
- Biometric verification by World ID Sam Altman
Technology of the future today
The heart of the system is World ID – Biometric verification technology created by the co -founder of Opeli, Altman herself. The system uses the iris scanning by the device called ORB to confirm the uniqueness of each borrower and block the possibility of taking many loans under false identities.
“We borrow ordinary people – sellers, teachers, employees of Gig Economy” – explains Diego Estevez, founder of Divine Research. After verification, the data is encrypted, sent to the phone and permanently deleted from the ORB – the company assures, emphasizing care for privacy.
High -risk model and high profitability
Divine operates according to a seemingly risky model. With an interest rate of 20-30%, the company absorbs about a 40%insolvency rate at the first loans. Losses balance:
- High interest rate – 20-30% per year
- Recovery Worldcoin tokens granted to borrowers
- Capital from users looking for high profits
Estevez stated:
We designed the system so that after taking into account the insolvency indicators of the lender always achieve profit
Global range, local problem
The platform focuses on financially excluded people, mainly in developing countries. Type borrowers are teachers, small entrepreneurs and employees of Gig Economy without access to traditional banks.
“It’s microfinonse on steroids” – describes Estevez his platform, emphasizing its potential for democratization of financing access, on a global scale.
Growing competition
Divine is not lonely in this niche of the market:
3jane (supported by Paradigm) – verifies income and assets, builds AI systems to automate credit decisions
Wildcat – offers loans with limited security for market animators
Jpmorgan – Apparently, he is preparing to offer loans secured by assets such as Bitcoin and Ether
Privacy vs. innovation
The use of biometric data is controversial. Spain and Portugal temporarily banned World ID, and Argentina and Great Britain considered similar steps. Privacy protection organizations warn against the potential risk of burglary and abuse of biometric data.
However, Altman and his team emphasize that almost 7 million people have already registered to scan the iris, which indicates the growing acceptance of this technology.
The future of decentralized finances
The Divine Research model may have far -reaching consequences:
Advantages:
- Democratization of access to loans
- Global scale of activity without geographical restrictions
- Transparency offered by blockchain
Challenges:
- High capital costs (20-30%)
- Significant insolvency indicators (40%)
- Regulatory uncertainty
- Concerns about the privacy of biometric data
Summary – is this model right?
Companies such as Divine Research are trying to create the future, combining decentralized finances with new digital identification tools to offer financial access where banks have long fails.
30,000 loans are just the beginning. Are we witnessing the birth of a new financial system or just another phase of experiments with blockchain? We will know the answer in the coming years, when models such as the one offered by the Divine Research startup will be tested on a larger scale.
One thing is certain – traditional banks have reasons to reflect on their customer service models excluded from the financial system.
