Crypto Lender Uses World ID Iris Scans to Expand Access to Microloans

A San Francisco-based fintech startup is using biometric identity verification to power a new crypto lending platform aimed at underserved borrowers worldwide. Divine Research, which began issuing loans in December of last year, has distributed around 30,000 uncollateralized microloans so far – mostly under $1,000 and denominated in the USDC stablecoin.

Blockchain Credit Backed by Iris Verification

The program uses World ID’s iris-based proof-of-personhood system, developed by Tools for Humanity and backed by Sam Altman. (The World Foundation, a separate nonprofit, manages the WLD token associated with the World ecosystem.) Divine’s integration with World ID ensures that each borrower can access only one loan at a time, preventing users from creating multiple accounts to evade repayment after default.

“We’re loaning to average folks like high-school teachers, fruit vendors… basically anyone with internet access can get access to our funds. This is microfinance on steroids,” said Diego Estevez, founder of Divine Research, in a recent interview.

The platform targets unbanked and underbanked individuals who have internet access but limited access to formal credit. Interest rates range between 20 and 30 percent, which the company says reflects a projected first-loan default rate of roughly 40 percent. To reduce losses, Divine issues borrowers a small amount of Worldcoin tokens during the lending process. These tokens can be partially reclaimed if the borrower fails to repay the loan.

Decentralized Lending with Built-In Identity Controls

Lending capital is provided by individual investors seeking high-yield returns through a decentralized, peer-to-peer structure. The platform operates without traditional credit checks, instead relying on World ID for one-time biometric verification. Divine says this structure allows for scalable identity assurance while keeping the system non-custodial. Biometric data is encrypted and decentralized, and raw iris images are deleted after processing, addressing privacy concerns commonly associated with biometric systems.

The program follows recent developments in the World ecosystem, including the launch of World Chain with native USDC integration. While the connection between World ID and USDC is indirect, the broader infrastructure improvements are expected to support more flexible identity-verified payments in decentralized finance environments.

As Divine Research continues to expand, the company’s ability to balance high default risk with investor returns will be a critical test for the sustainability of uncollateralized crypto lending. Its performance may influence how biometric verification is used in financial inclusion strategies across the blockchain industry.

Sources: AInvest, PYMNTS

–

By Cass Kennedy