Decentralised credit platform Goldfinch has raised $25m in a Series A extension round led by a16z.

The round saw participation from Bill Ackman, Blocktower, Kingsway Capital, Helicap, YC Alumni Fund, Jinglan Wang, MSA Capital among others.

All of Goldfinch’s existing investors including Kindred Ventures and Stratos Technologies also joined the round.

The new funding will be used to expand financial inclusion via an open credit protocol.

Goldfinch operates as an open marketplace for loans without collateral and decentralises the loan underwriting process.

It offers credit lines to lenders, who can get stablecoins from the Goldfinch’s pool and provide the capital to borrowers.

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By depositing crypto into the Goldfinch pool, investors can earn yield.

Once the lenders return interest payments to Goldfinch, then all the participating investors are distributed with the money.

While Goldfinch offers access to capital, loan origination and servicing are left to lenders.

a16z general partner Arianna Simpson said: “By removing the need for crypto collateral and providing a means for passive yield, Goldfinch is dramatically expanding lending to more potential borrowers and capital providers.”

Goldfinch, which has $39m in active loans, caters to the capital needs of over 200,000 borrowers in 18 countries.

Decentralised finance and crypto have been making a lot of headlines recently.

In November 2021, the Commonwealth Bank of Australia bought a minority stake in cryptocurrency platform Gemini to offer crypto-related services.

Last month, Indian private lender Kotak Mahindra Bank reportedly partnered with the country’s leading crypto exchange WazirX.