Divine Research Issues 30,000 Unbacked Crypto Loans at 20-30% Interest 40% Default Rate via World ID Iris Scans

Divine Research has launched a novel unsecured crypto lending initiative, issuing 30,000 USDC stablecoin loans to borrowers in underserved markets. The platform leverages World ID, a biometric verification tool developed by Sam Altman, to authenticate identities via iris scans. This approach bypasses traditional credit checks and collateral requirements, enabling rapid disbursement to individuals lacking access to conventional banking systems. Microloans, typically under $1,000, are offered at interest rates between 20% and 30%, reflecting the high-risk profile of the target demographic [1].

The initiative, operational since late 2024, has seen a reported 40% default rate by July 2025, underscoring the challenges of lending to populations with limited credit histories [2]. Despite this, Divine Research emphasizes its mission to expand financial access, contrasting traditional lending practices that often exclude low-income or unbanked individuals. The integration of World ID replaces conventional KYC procedures with biometric authentication, mitigating identity fraud and Sybil attacks—common risks in decentralized finance. However, critics highlight the sustainability concerns of high-interest microloans, particularly in markets with inadequate repayment infrastructure [3].

World ID’s role extends beyond verification, reshaping the risk landscape of crypto lending. By prioritizing accessibility over stringent risk mitigation, Divine Research challenges established financial norms while introducing scalable solutions for identity verification. The firm’s model aligns with broader DeFi trends to embed identity tools into lending platforms. Yet, the reported default rate underscores the need for mechanisms to balance inclusivity with fiscal responsibility as the sector evolves [5].

The initiative’s impact remains largely financial, with interest structures designed to offset default risks. High-interest rates (exceeding 40%) ensure profitability despite losses, positioning the model as a potential precedent for future decentralized identity solutions. Sam Altman’s technology introduces a novel standard for identity verification, demonstrating its viability in securing crypto loans. This innovation could influence regulatory frameworks, though responses remain minimal as the market tests its long-term efficacy [6].

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[1] [title1: Divine Research Issues 30000 Unbacked Crypto Loans ...] [url1: https://www.ainvest.com/news/divine-research-issues-30000-unbacked-crypto-loans-world-id-40-default-rate-20-30-interest-2507/]

[2] [title2: Lender Divine Research Uses World ID to Verify Borrowers ...] [url2: https://www.panewslab.com/en/articles/7jiy6k7y]

[3] [title3: Divine Research Issues 30000 Unbacked Crypto Loans ...] [url3: https://www.ainvest.com/news/divine-research-issues-30000-unbacked-crypto-loans-world-id-40-default-rate-20-30-interest-2507/]

[5] [title5: 30000 uncollateralized crypto loans issued via iris scans to ...] [url5: https://www.ainvest.com/news/30000-uncollateralized-crypto-loans-issued-iris-scans-expand-financial-access-2507/]

[6] [title6: Divine Research Issues 30000 Unbacked Crypto Loans ...] [url6: https://www.ainvest.com/news/divine-research-issues-30000-unbacked-crypto-loans-world-id-40-default-rate-20-30-interest-2507/]