Jan. 24, 2022 — Credit DeFi Alliance (CreDA), the leading decentralized credit rating service, has announced the appointment of Fakhul Miah as the new CEO. Miah is leaving his position at Morgan Stanley in London, where he held key global and regional positions for 15 years, including titles such as global head of institutional margin financing, margin technology development and risk control.

In addition to his traditional banking experience, Miah was instrumental in the buildout of crypto futures for Morgan Stanley in 2017, including operational flows, product architecture, risk modeling and margin methodologies. He also serves as an elected council member for the Elastos Cyber Republic decentralized autonomous organization.

Born and raised in east London to Bangladeshi immigrants, Miah and his 12 siblings saw first-hand the challenges facing families without access to traditional banking. This led him to become an active advocate for financial inclusion and is ultimately what drew him to decentralized finance (DeFi) and CreDA. 

“The implementation of credit scoring has the potential to impact billions of the world’s underbanked,” said Miah. “This was the promise of decentralized finance since its inception. However, the reality is that over-collateralization and the lack of trust are creating new barriers. CreDA changes this by using blockchain’s transparency and immutability to analyze a person’s assets and behaviors, establishing a trust score that allows lenders to offer low or no-collateral loans.”

Modeled after traditional consumer credit agencies, CreDA introduces the concept of personal credit scores into the $250 billion-plus DeFi ecosystem. What’s more, the protocol also holds the potential to provide a trust architecture for the relatively young and volatile MetaFi ecosystem that includes emerging areas such as DeFi, GameFi and SocialFi. 

“The DeFi landscape is quickly evolving, but there is still one factor that is missing — credibility,” said Miah. “The CreDA protocol enables DeFi and other Web3 platforms to model risk profiles across its user base and offer personalized rates and services, making them more competitive versus industry peers.”

CreDA recently announced a proof-of-concept lending capability through its platform as part of a partnership with cross-chain DeFi lending platform Filda. Through Filda, CreDA offers exclusive lending rates to CreDA users who mint their crypto credit score as a credit nonfungible token (NFT), which gives them access to leveraged lending and low-or-no-collateral loans directly within the CreDA platform.

How CreDA works

CreDA allows users to link their wallets, mint a credit NFT and borrow at industry-defying rates, all from within the same platform or natively on partner platforms. 

CreDA provides on-chain credit ratings using the CreDA Oracle, which employs artificial intelligence (AI) to examine the user’s assets, historical transactions and behavior in the crypto space across multiple blockchains. This data is used to calculate a credit score that is then minted into a secure credit NFT. The credit NFT enables the user to unlock preferential rates and incentives.

The Filda partnership lets users access leveraged lending and low- or even no-collateral loans based on the user’s crypto credit score. The score represents a user’s ability and willingness to pay back loans, de-risking Filda’s exposure and rewarding the user for good on-chain behavior. 

One major focus for CreDA is ensuring a safe, secure experience for users. To do this, data is fully protected, secured by industry-leading, World Wide Web Consortium-compliant decentralized identifications, which are linked to a user’s credit NFT. CreDA recently underwent a strict security audit with the leading blockchain security group, Certik.