Paradigm, a leading investment firm in the cryptocurrency ecosystem, has spearheaded a $5.2 million seed funding round for 3Jane, a crypto startup aiming to build the first credit-based money market specifically designed for digital assets. Unlike traditional DeFi lending protocols which rely heavily on overcollateralization, 3Jane plans to implement unsecured lending by assessing creditworthiness through a proprietary algorithm called 3CA (3Jane Credit Assessment).
This approach integrates both on-chain and off-chain data, including assets across DeFi platforms, centralized exchanges, and traditional bank accounts, creating a hybrid fintech-style credit assessment system. The initiative signals growing institutional interest in unsecured lending within the digital asset space, potentially reshaping lending practices between traditional finance and decentralized finance (DeFi).
With a planned mainnet launch scheduled for Q3 2025, 3Jane aims to enhance capital efficiency by freeing borrowers from locking up excess collateral, expand use cases for digital assets, and foster broader financial inclusion. Challenges remain in accurately assessing credit risk in a pseudonymous environment, enforcing agreements without traditional legal frameworks, and navigating evolving regulatory landscapes.
Paradigm’s investment reflects confidence in the maturation of DeFi, emphasizing the need for sophisticated credit infrastructures to attract institutional investors and unlock new financial activities within the decentralized ecosystem. This development could also affect the USDC stablecoin market by introducing new lending dynamics. The crypto community and market participants are closely watching 3Jane’s upcoming launch as a pivotal moment that may unlock a new era of crypto credit markets.