With just a couple of weeks until the end of 2021, we’re sending away the most successful year in DeFi’s history. Numerous broken ATH records and multiple new ecosystems show that DeFi isn’t the only layer of building for this. A brand new paradigm also shows that traditional brick-and-mortar banks really do need DeFi. To showcase the latter we can mention the noticeable examples of the European Investment Bank issuing its €100M digital bond on Ethereum and Société Générale, the third largest French bank, borrowing $20M for MakerDAO. Both examples originated in Europe – the Old Continent is the homeland of the first banks recorded in human history and for centuries was leader in the sector. Europe also has the most crypto-based economy on the planet, accounting for over $1T of all transactions. The majority are made by DeFi.

A new up and coming protocol bridging the gap between DeFi and TradFi is coming from Europe: Credefi – a hybrid of FinTech solution and DeFi protocol connecting crypto lenders of stable coins with Small and Medium Enterprise (SME) borrowers from the real world economy.

Credefi was born out of a desire to address major issues.

• DeFi’s inconsistent yields that evaporate in bear markets and speculative borrowers that are fickle and cannot satisfy DeFi lending supply
• SME owners have difficulty getting funding from traditional banks at rates that do not threaten their future business.

Credefi enables decentralized and safe lending to portfolios of businesses, protecting lenders while providing them fixed APY that is uncorrelated with crypto markets’ volatility. Credefi accomplishes this by offering three products:

• Based on the risks associated with each project, credit portfolios can be divided into different categories.
• The peer-to-peer loan allows lenders and borrowers directly to negotiate the terms of the transaction.
• Trans-border trade financing that allows underwriting credit and lines of credit for transactions

Credefi is the first blockchain project having a major partnership with a leading institution from the traditional finance space: Experian (OTC:) – one of the Big Three credit reporting agencies aggregating data for more than 1B companies and clients in over 40 countries. Experian will verify and calibrate Credefi’s credit scoring models for risk assessment. Credefi and Experian will work together to determine how open banking data and blockchain technology could be used by SMEs to make it easier for them access finance.

Credefi has just completed a $1.8M raise, which was led by Marshland Capital. Moonrock Capital also participated. The protocol also completed one of the best IDOs on Cardstarter – Cardano’s leading launchpad, by raising $420K.

Credefi is now listed on the Top 1 centralized exchange for altcoins – KuCoin. Credefi’s native token, $CREDI, is now actively traded on KuCoin under the pair CREDI/USDT. Credefi can also be traded on UniSwap as a paid CREDI/USDT token and PancakeSwap with the CREDI/BUSD pair to emphasize its cross-chain interoperability goals. Credefi plans to add CEX listings soon.

Credefi is part of DeFi’s new paradigm of connecting the space with TradFi and eventually merging them into one seamlessly working financial system.

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