Pencil Finance deployed $1 million in student loans entirely on-chain on July 10, 2025, completing the first fully on-chain student loan cycle. The loans were structured in two tranches on EDU Chain, a layer-3 blockchain built on Arbitrum: $750,000 for the senior tranche at a fixed 15% annual yield, and $250,000 for the junior tranche at variable returns. The loans target students in the Philippines and Indonesia, with ErudiFi handling on-the-ground loan administration. Animoca Brands, Open Campus DAO, and NewCampus provided the liquidity commitments. Pencil Finance had secured $10 million in liquidity commitments in April 2025 prior to this inaugural deployment.
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