Pencil Finance completes first fully onchain $1M student loan cycle in Southeast Asia

First fully onchain student loan cycle completed

Pencil Finance, a protocol that uses blockchain to manage student loans as real-world assets (RWAs), has completed its first fully onchain lending cycle. The company deployed $1 million in capital to finance loans for about 6,600 students across 118 schools and universities in Southeast Asia.

The loans were repaid by borrowers to the funders, who received yield in return. Pencil Finance claims this is the first time student loans have been fully recorded and managed on a blockchain network.

Funding and loan structure

The $1 million loan bundle was funded in July 2025 by Animoca Brands, Open Campus, and New Campus. It was structured in two parts: a senior tranche with fixed returns and a junior tranche with variable returns and first-loss risk.

Key numbers

• 6,600 students received loan offers across 118 schools and universities.
• 1,050 students received direct funding.
• 50% of borrowers were female.
• 93% of borrowers came from lower-income households.

Why this matters

The loans were designed for students who struggle to get financing from traditional lenders. By using blockchain, Pencil Finance aims to make lending more transparent and accessible.

Tokenized RWAs, like these student loans, are increasingly being used to issue or secure loans in a way that can be tracked on a public ledger.

Sources

• Cointelegraph