Teller Debuts Unsecured Lending to Singaporean DeFi Consumers with SG Loans
SG Loans, a Singapore-based decentralized and unsecured lending market built on the Teller protocol via Polygon and in partnership with Signum Capital, empowers users to obtain personal unsecured loans without the need of a bank or traditional loan provider. SG Loans is the first unsecured DeFi lending platform for Singaporean consumers, and unlocks opportunities previously exclusive to traditional finance.
The Current Crypto Scene in Singapore
In Singapore, one in every three consumers has accessed a personal loan in the past year. Funds are primarily used for daily living expenses, supporting family, and financing a mortgage.
The crypto space in Singapore has grown rapidly in recent times, with a total space investment value of $1.48 billion in 2021 in comparison to $110 million in 2020. According to Statista, a 2021 survey revealed that the average rate of crypto ownership in Singapore was 15.8%, surpassing the global ownership rate of 15.5%.
“We’re excited to help unveil a new DeFi-native credit market, based on the traditional credit ecosystem of today. SG Loans empowers consumers in Singapore to leverage both traditional credit history and digital asset holdings to access a personal loan. This innovative consumer loan market, built on the Teller protocol, unifies a mainstream user experience with the digital asset backend infrastructure of DeFi.” said Ryan Berkun, Teller’s Founder and CEO.
Opening the Books
SG Loans will function similarly to the existing Teller Protocol that fosters the creation of unsecured lending markets for crypto servicing lenders and borrowers alike.
“The Teller protocol is an excellent demonstration of how TradFi data can be used to enhance the zero or under collateralized lending on-chain. DeFi users can now borrow based on their credit rating from the Singapore Credit Bureau,” said YY Lai, Partner of Signum Capital. “The Teller protocol has proven an ability to bring TradFi and DeFi components together. It is truly incredible how TradFi and DeFi combined ultimately benefit the mass market, rather than just crypto natives.”
To receive a loan, borrowers submit their on-chain credentials along with their off-chain credentials in the form of a credit report from the Credit Bureau of Singapore. With this information, a borrow bid request is created and analyzed by Teller’s Credit Risk Algorithm. The bid request is then presented to lenders who can use their funds to fill the loan in USDC. The loan value can range from $500 to $6,000 in USDC, with the APY ranging from 8% to 16% for lenders. An unsecured Credit Card Loan in current Singapore TradFi markets has an APR of around 26% for borrowers.
Standing on the Shoulders of Giants
Built on Polygon, the leading platform for Ethereum scaling and infrastructure development, SG Loan users will be able to avoid high gas fees and latency associated with Ethereum while still prioritizing decentralization and security.
“Polygon seeks to be the bedrock of the next stage in the Web’s evolution and in DeFi — and the Teller protocol being built on Polygon is a testament to the ingenuity and value-creation bridging the gap between TradFi and DeFi, ” said Hamzah Khan, Head of DeFi and Labs at Polygon. “We are grateful to be a part of bringing these financial opportunities to those in Singapore and excited for the innovation being built throughout DeFi.”
The two organizations are no strangers to collaboration, with Teller consistently enlisting Polygon as a key integration.
Next Stop: Worldwide
Teller team members, partners, and community members are optimistic about the strides towards adoption SG Loans is making for DeFi consumers in Singapore and across the globe.
“As Global Community Lead at Teller, it’s inspiring to know that we’re aiming to provide financial services to where it is needed most. We are seeing blockchain adoption in places like El Salvador and Ukraine which are two regions that have historically lacked access to efficient global financial services. With the adoption of digital assets, millions of people who previously had no records of ownership or income can now access credit and scale their businesses beyond the informal economy.”
Teller users can continue to expect the release of more exciting and innovative developments in unsecured lending.
To use SG Loans, please visit app.sg.loans/.
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