Pencil Finance Claims First Fully On-Chain Student Loan Cycle With $1M Bundle
Pencil Finance says a $1 million student-loan bundle completed its full funding and repayment cycle entirely on-chain, in what it calls the first such on-chain lending event.
Why it matters
The deal represents an attempt to bring student-loan financing into decentralized finance infrastructure, potentially expanding DeFi's reach into real-world assets. However, the lack of disclosed financial details and the single-source nature of the report limit the ability to assess its significance or viability.
Key facts
Pencil Finance completed a $1 million student-loan funding and repayment cycle on-chain.
1,000,000 USDReported by Decrypt
Animoca Brands, Open Campus, and NewCampus funded the bundle in July 2025.
Reported by Decrypt
The financing supported more than 6,600 students at 118 schools and universities.
6,600 studentsReported by Decrypt
ErudiFi issued the underlying student loans.
Reported by Decrypt
Pencil Finance called this the first fully on-chain student-lending cycle.
Reported by Decrypt
The protocol operates on EDU Chain, an Ethereum-based network built using Arbitrum Orbit.
Reported by Decrypt
The company did not disclose interest rates, investor yields, defaults, or blockchain transaction records.
Reported by Decrypt
What happened
Pencil Finance, an Animoca Brands-incubated decentralized lending protocol, announced it completed a $1 million student-loan funding and repayment cycle recorded entirely on-chain. Education financing company ErudiFi originated the underlying student loans, while Animoca Brands, Open Campus, and NewCampus provided the capital in July 2025. Pencil Finance packaged the loans as an on-chain private-credit investment on EDU Chain, an education-focused Ethereum-based network built using Arbitrum Orbit. Decrypt reported the story, noting that Pencil Finance's claim to be the first fully on-chain student-lending cycle could not be independently verified. The company did not disclose interest rates, investor yields, defaults, or blockchain transaction records. ErudiFi deployed most of the bundle through student loans and tuition financing supporting more than 6,600 students at 118 schools and universities.
How the story developed
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Decrypt Crypto media | This Crypto Project Just Funded 1,000 Student Loans Entirely On-Chain | Original |
Related events
Robinhood Chain Hits Record $3.7 Billion in 24-Hour DEX Volume as Arbitrum Revenue Sharing Draws Debate
Robinhood Chain set a new all-time high of $3.7 billion in 24-hour DEX volume on September 5, while an Arbitrum co-founder and Solana co-founder clashed over the merits of Robinhood's revenue-sharing model.
Standard Chartered Forecasts $10 ARB as Arbitrum Revenue Grows
Bitcoin Slides From $82,400 to Under $80,000 After Strong US Jobs Report
Bitcoin peaked at $82,400 before plunging below $79,000 on a strong US jobs report, while altcoins ARB and ZEC posted double-digit gains.
Cryptopolitan publishes Tron price prediction forecast through 2032
Cryptopolitan issued a TRX price prediction report forecasting a high of $0.603 by end of 2026 and a range of $2.53 to $2.89 by 2032.
