Since its first introduction post the global financial crisis of 2008, cryptocurrencies have seen an exponential boom. Coupled with the uncertainty surrounding traditional financial institutions and the growth in Bitcoin’s value, many have shifted their holdings from traditional financial assets to digital financial assets.

Presently, more than a decade after Bitcoin’s release, the blockchain-cryptocurrency has diversified manifold. Especially with the rise of DeFi, we are now witnessing a profound interest about these innovations, driven primarily by their potential and promise. However, to be able to adequately benefit from such developments, one must begin with a proper understanding of what it…


The benefits of good credit ratings is often among the first things that come to when discussing this subject. Most people are willing to understand how credit scores work and make an active effort in positively influencing them only if they are aware of their gains. In this context, the fact remains that although the benefits of a high credit score are manifold — ranging from low interest rates to good-conditioned loan limits — certain specific consequences remain more influential than others. …


Dwelling in-depth about discussions on credit, debit, lending, and credit scores brings to the surface the usage of various terms related to the finance industry. Equity, creditworthiness, loan-to-value ratio, debt-to-income ratio, and credit utilization ratio are some of the industry’s most commonly used terms, by lenders and borrowers alike.

In this respect, to equip users in making informed decisions, this article is an attempt to cover one of the most important features of credit and debit — Credit Utilization Ratio. Credit utilization ratio is responsible for 30% of the weightage on credit scores. …


Debit and Credit, the two pillars of your Credit Score and its impact

Both credit and debit make an essential impact on credit scores, but being starkly different, they affect creditworthiness in diverse ways. In traditional finance, banks and other institutions issue credit cards, and as the primary lending body, specify the loan’s conditions such as interest rate, credit limit, balance repayment, and so on. In turn, the borrower is free to use the loaned amount for various payments or bulk payments like home equity.

Debit cards, on the other hand, are solely secured systems that function as a mode…


Numerous details and credit-habits go into the making of credit scores, which are also the factors responsible for helping the lender determine creditworthiness. In other words, these factors are essentially markers of the risk of default associated with user accounts. For borrowers therefore, it becomes crucial that they are aware of these factors and their effect on credit reports in order to reduce financial vulnerability.

In this regard, Hybrid Bank’s DeFi-based credit reports are the first-of-its-kind. Motivated by the lack of a viable FinTech alternative, Hybrid Bank is leveraging blockchain technology to develop a unique credit reporting system. …


The rise of Decentralized Finance (DeFi) has introduced an unprecedented scope for blockchain implementation. Today, the technology not only augments traditional finance but also overcomes several of its shortcomings and persistent bottlenecks.

Features of Hybrid Bank

In turn, the emerging blockchain-cryptocurrency community has propelled the growth of myriad financial solutions, bringing under their fold many hitherto excluded segments. For example, consider the global unbanked population, wherein DeFi has brought secure trading, lending, as well as identity services, thus enabling their access to financial services.

In this context, credit rating systems and their assigned scores have emerged as a crucial element. Presently, CreditCoin and Hybrid…


Credit reports occupy such a massive space in our daily lives. They serve as a preliminary but authentic gateway to trust that is necessary before any financial transaction, standing as a sentinel against risky and fraudulent financial ventures.

As such, credit reports reveal financial backgrounds, history of loans, debts, repayments, and public records like bankruptcies and criminal activities. This expansive information stands as proof of creditworthiness. Positive information on a credit report is essentially the qualifier for approval of loans and associated benefits.

In that respect, it becomes crucial for individuals and enterprises alike to be informed about what lenders…


Alongside the growing popularity of crypto-assets, lending and borrowing have emerged as a leading use case in this domain. Consequently, there’s an increasing need for a unified credit rating which can be leveraged for several purposes, including risk assessment and mitigation.

Traditionally, credit ratings are available for a range of asset classes including stocks, but not for crypto-assets. Yet, the novel incorporation of a credit rating system to cryptocurrency is a foolproof way of making this asset class even more credible for clients and investors alike.

In this context, Hybrid Bank has developed a first-of-its-kind digital identity and credit rating…


From top-tier financial institutions to SMEs, all are dependent on what is now known as the credit score. The traditional decision-making role of the lending officer from back in the day transformed into FICO score, which took into its consideration various factors and behaviors associated with credit risk and approached it statistically. Thereby, making credit scores a mainstay of traditional lending systems.

On that note, while DeFi lending platforms are revolutionizing the traditional financial landscape, organizations like Hybrid Bank are taking a necessary step backward to allow the distance to bring together the best of both decentralized and traditional lending…


One of the most devastating market plunges — the 2008 crash — was triggered by a massive $12.68 trillion debt recurring from defaulting subprime mortgages. The New York Federal Reserve Bank reported in May 2020, that the mortgage debt stood at $14.30 trillion. This demonstrated that the lending industry has several shortcomings that it overlooks time and again.

In this present scenario, blockchain-powered DeFi lending offers a fresh take to lending primarily by making complete information available easily and through smart contracts. Apart from the mainstays of blockchain technology, cryptocurrency lending has specific use-cases as discussed below.

Interest

While the average

HYBRID BANK

Hybrid Bank is building a platform with Tools and Techniques to value Credit Worthiness of Companies dealing in Digital Assets.

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