Divine – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Mon, 28 Jul 2025 10:00:47 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Divine – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Divine Research Uses World ID to Power Global Crypto Microloans https://earlybirdsinvest.com/divine-research-uses-world-id-to-power-global-crypto-microloans/ https://earlybirdsinvest.com/divine-research-uses-world-id-to-power-global-crypto-microloans/#respond Mon, 28 Jul 2025 10:00:46 +0000 https://earlybirdsinvest.com/divine-research-uses-world-id-to-power-global-crypto-microloans/

Divine Research, a lending company based in San Francisco, has issued about 30,000 unsecured crypto loans since December 2024, according to a July 27 report by Financial Times.

These small loans, typically under $1,000 in USDC
USDC


$0.9730

, are primarily offered to individuals outside the US who lack access to traditional banking services.

Instead of requiring collateral, Divine Research uses Sam Altman’s World ID system, a tool that scans a person’s iris, to confirm each borrower’s identity and stop repeat borrowing after a default.

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The company aims to make short-term loans available to anyone with internet access. Founder Diego Estevez stated that their borrowers range from teachers to street vendors.

Divine Research’s approach is designed to reach people often left out by traditional banks. Estevez described it as “microfinance on steroids”.

Interest rates for these loans range from 20% to 30%. According to Estevez, about 40% of borrowers fail to repay their first loan, but the higher rates are meant to cover those losses. He also mentioned that users receive free World tokens when they take a loan, and those tokens can be partially recovered if the borrower fails to pay.

Divine Research’s lenders are everyday people looking to earn on their savings. Estevez said anyone can fund loans on the platform. The system is designed to ensure that even with a high number of defaults, lenders can still expect to earn a return.

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]]> https://earlybirdsinvest.com/divine-research-uses-world-id-to-power-global-crypto-microloans/feed/ 0 50105 Divine Research issues unbacked crypto loans using Sam Altman’s World ID https://earlybirdsinvest.com/divine-research-issues-unbacked-crypto-loans-using-sam-altmans-world-id/ https://earlybirdsinvest.com/divine-research-issues-unbacked-crypto-loans-using-sam-altmans-world-id/#respond Sun, 27 Jul 2025 12:03:05 +0000 https://earlybirdsinvest.com/divine-research-issues-unbacked-crypto-loans-using-sam-altmans-world-id/

San Francisco-based lender Divine Research has issued around 30,000 unbacked short-term crypto loans since December, using OpenAI CEO Sam Altman’s iris-scanning platform World ID to verify borrowers.

Divine offers loans under $1,000 in the USDC (USDC) stablecoin, mainly to overseas borrowers underserved by traditional finance. It uses World ID to ensure users cannot open multiple accounts after defaulting.

“We’re loaning to average folks like high-school teachers, fruit vendors . . . basically anyone with access to the internet can get access to our funds,” Divine founder Diego Estevez told the Financial Times. “This is microfinance on steroids.”

Interest rates range from 20% to 30%, with a reported first-loan default rate of around 40%. “High interest rates compensate for these losses,” Estevez said, adding that free World tokens issued to borrowers can be “partially” reclaimed.

JPMorgan considering Bitcoin-backed loans. Source: GC Cooke

Related: Fees, collateral give DeFi edge as TradFi eyes crypto loans

Everyday investors can earn by funding high-risk crypto loans

Estevez said Divine’s lenders are everyday individuals seeking solid returns. “Anyone can provide liquidity. We’ve engineered the system such that after accounting for default rates and the [interest] rates on offer, providers will always make a profit.”

Divine is part of a growing group of high-risk crypto lenders capitalizing on renewed market momentum and political tailwinds, including support from former US President Donald Trump.

Another startup, 3Jane, recently raised $5.2 million from Paradigm and offers uncollateralized credit lines on Ethereum. Unlike Divine, 3Jane requires “verifiable proofs” of assets or income, but still no collateral.

3Jane plans to introduce AI agents that follow lending rules automatically, aiming to lower rates while enforcing repayment. Defaulted loans on its platform are sold to US debt collectors.

Other players like Wildcat cater to market makers and trading firms, offering undercollateralized loans with customizable terms. According to Wildcat adviser Evgeny Gaevoy, “In the event of a default, lenders co-ordinate directly among themselves to seek recourse.”

Related: Fintech firms will move to DeFi lending within 3 years

Crypto lending gains traction

Lending remains a small slice of the crypto market but attracts growing attention as institutional players reenter the space. Last week, reports revealed that JPMorgan Chase is looking into crypto-backed loans, planning to lend directly against crypto assets like Bitcoin (BTC) and Ether (ETH).

However, the shadow of 2022 looms large, when major crypto lenders like Celsius and Genesis collapsed. Celsius’s CEO Alex Mashinsky was sentenced to 12 years for fraud, and Genesis settled a $2 billion lawsuit.

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