Coinbase CEO: On-chain Reputation Will Replace FICO Credit Scores

Coinbase CEO Brian Armstrong stated that on-chain reputation will become the new generation of credit scoring systems, potentially replacing the FICO scores that currently dominate 90% of top loan decisions in the United States. Armstrong pointed out that public ledgers can record repayment history, wallet age, and counterparty behavior, allowing any lender to access the same on-chain records. Ethos Network has rated wallets through mutual endorsements among users, and based on this rating, the lending application Credifi can offer unsecured loans of up to $3,000 to wallets with scores reaching 1,800. However, since on-chain addresses are not tied to real identities, borrowers can create new wallets at any time, and whether on-chain reputation can effectively price real risks remains to be validated by subsequent default rate data.

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