Pencil Finance completed a $1 million on-chain student loan cycle, covering 6,600 students

Student Loan RWA Agreement Pencil Finance announced the completion of its first fully on-chain student loan cycle, deploying $1 million in funding as a lender, with borrowers having repaid both principal and interest to the funders of the asset package. This loan package was funded in July 2025 by Animoca Brands, Open Campus, and New Campus, and is structurally divided into fixed-income senior shares and floating-income junior shares that bear the risk of priority losses.

This $1 million on-chain loan cycle provides financing for approximately 6,600 students across 118 schools and universities in Southeast Asia, with about 1,050 students receiving direct funding. Pencil Finance stated that these loans target student groups underserved by traditional financial institutions, with 50% of borrowing students being female and 93% coming from low-income families, claiming this is the first fully on-chain loan cycle to transparently record student loan financing on the blockchain.

In addition, tokenized RWA is increasingly being used to issue loans or as collateral for loans. In July of this year, the Brazilian stock exchange B3 issued a loan of 100,000 Brazilian Reais (approximately $19,600) secured by 10 tokenized cows, each cow possessing a unique digital token linked to a crypto digital identity.