Decentralised credit protocol Goldfinch swoops up $25m

Decentralised credit protocol Goldfinch has swooped up $25m in an investment led by Andreessen Horowitz.

Some of the other backers to the round include Bill Ackman, Blocktower, Kingsway Capital, Helicap, YC Alumni Fund, Jinglan Wang, MSA Capital and others. All of Goldfinch’s previous investors also participated, including Kindred Ventures and Stratos Technologies.

The FinTech company enjoyed a strong 2021 for growth, with active loans on the protocol doubling every two months, increasing by a total of 154-times from $250,000 in 2020 to $39m. It claims to be financing over 200,000 borrowers in 18 countries.

With the fresh investment capital, Goldfinch will now deepen its protocol so it can expand financial inclusion.

Goldfinch is a decentralised credit protocol that leverages cryptocurrency to empower financial inclusion around the world. Its goal is to build a global network that enables anyone to lend someone money.

In a blog post announcing the funding round, Goldfinch explained most people cannot borrow on a DeFi because it requires overcollateralisation with crypto. By removing this need, Goldfinch hopes it can reach more people.

The company also announced the initial team behind Goldfinch is spinning out into Warbler Labs, which will help maintain the protocol and support the community. This division will eventually grow into a separate organisation, it said.

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