KR1 PLC (LON:KR1) revealed that it has invested US$75,000 into Union Finance, a credit mutual built on Ethereum.
The blockchain and cryptocurrency investor said Union Finance will allow people and organisations to take out loans on the blockchain without the need for collateral, a credit score, or revealing personal information on a public ledger.
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KR1 added that it will receive a yet-to-be-determined amount of discounted tokens from its participation in the seed round.
“With around US$1bn locked up in the [decentralised finance] 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”, Keld van Schreven, KR1 managing director and co-founder said in a statement.
“[Union Finance] is a new, innovative platform to open up uncollateralised lending to everyone and represents a paradigm shift for DeFi. [Union Finance founder Jacob Shiach] is re-imagining uncollateralised lending and Union leverages the power of Ethereum to unlock an entirely new area of the decentralised finance ecosystem”, he added.
Shares in KR1 were valued at around 4.8p in early trading on the Aquis exchange on Friday.