KR1, a blockchain asset and crypto investment firm, today announced that it has invested a total of USD $75,000 in the Union Finance project. KR1 will receive a yet-to-be-determined amount of discounted tokens from this seed round participation.
Union Finance is a credit mutual built on Ethereum, which allows people and organizations to take out loans on the blockchain without the need for collateral, a credit score, or revealing personal information on a public ledger.
“KR1 saw the opportunity in Union even before I did, and their early support was critical in getting this company rolling; I’m excited to build the future of credit with them.”
– Jacob Shiach, Founder of Union Finance
Ethereum’s decentralized finance ‘DeFi’ ecosystem is presently relying on heavy over-collateralization, which makes some projects capital inefficient for most personal or business credit use cases and limits the appeal for mainstream adoption. Unions’ unsecured lending protocol opens up this emerging financial system to a much larger set of use cases, for example, micro-loans, credit lines within the Internet of Things, and social lending.
“With around USD $1 billion locked up in the DeFi ecosystem, it has grown considerably in the past 12 months, and we expect it to grow further. Union is exactly the type of DeFi project KR1 likes to back. It is a new, innovative platform to open up uncollateralized lending to everyone and represents a paradigm shift for DeFi. Jacob is re-imagining uncollateralized lending and Union leverages the power of Ethereum to unlock an entirely new area of the decentralized finance ecosystem.”
– Keld van Schreven, Managing Director & Co-Founder of KR1
