Pencil Finance, a student-loan protocol built around tokenized real-world assets, has completed what it describes as the first fully on-chain student lending cycle. The protocol deployed $1 million as a lender, and borrowers have repaid the pool’s backers principal plus interest. The loan package was funded in July 2025 by Animoca Brands, Open Campus and New Campus, with a structure split into fixed-income senior tranches and junior tranches that earn floating returns and take first-priority losses. Altogether, the $1 million facility financed about 6,600 students at 118 schools and universities in Southeast Asia; roughly 1,050 of them received direct support. Pencil Finance said the loans target students underserved by traditional finance. Among its student borrowers, 50% were women and 93% came from low-income households. The protocol called the milestone the first completely on-chain lending cycle to put student-loan financing transparently on a blockchain. Elsewhere, tokenized RWAs are increasingly used to issue loans or serve as collateral. In July 2026, Brazil’s B3 exchange originated a 100,000 Brazilian reais (about $19,600) loan backed by 10 tokenized cows, each linked to a unique digital token tied to a crypto digital identity.
Pencil Finance, a protocol applying tokenization to student loans, has finished what it calls the first fully on-chain cycle for student lending. It came in as the lender with $1 million, and the borrowers have since repaid the capital to the pool’s backers with interest.
The pool was set up in July 2025 with money from Animoca Brands, Open Campus and New Campus. The capital stack separates fixed-income senior tranches from junior tranches that collect floating returns and absorb losses first.
The $1 million cycle financed around 6,600 students at 118 schools and universities across Southeast Asia. Of those, about 1,050 received direct grants. Pencil Finance says the lending targets students who are poorly served by traditional banks; 50% of its borrowers were women, and 93% come from low-income households.
In its announcement, the project said the round marked the first fully on-chain lending cycle with student-loan financing recorded transparently on a blockchain.
Tokenized RWA collateral is also showing up in more loan activity. Brazil’s stock exchange B3 issued a 100,000 Brazilian reais (about $19,600) loan in July 2026, using 10 tokenized cows as collateral. Each cow has its own unique digital token linked to a crypto-backed digital identity.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
