Divine Research Launches Unsecured Crypto Loans Using World ID for Verification

San Francisco-based fintech startup Divine Research has issued around 30,000 unsecured short-term crypto loans since December, utilizing World ID, the iris-based identity verification tool developed by OpenAI CEO Sam Altman, to authenticate borrowers.

The platform primarily serves borrowers outside the traditional financial system, including users from underserved global regions. Loans are issued in USDC, a stablecoin pegged to the US dollar, and are typically under $1,000. Divine uses World ID to ensure individuals can’t exploit the system by creating multiple identities after defaulting.

Founder Diego Estevez describes the initiative as “microfinance on steroids,” emphasizing that the company lends to ordinary people—from school teachers to street vendors—as long as they have internet access.

Loan interest rates range from 20% to 30%, with an estimated 40% default rate on first-time loans. Divine offsets this risk through high-interest earnings and reclaimable incentives in the form of free World tokens distributed to borrowers.

On the lending side, Divine is supported by retail investors seeking high-yield opportunities. Estevez claims the model guarantees profitability for liquidity providers, even after accounting for loan defaults and associated risks.

Divine joins a wave of high-risk, crypto-native lenders gaining traction as crypto markets rebound and regulatory sentiment shifts. Political backing, including supportive comments from figures like Donald Trump, has further encouraged these ventures.

Other notable players in the space include:

• 3Jane, which recently raised $5.2 million in funding from Paradigm. The platform offers uncollateralized Ethereum credit lines backed by verifiable income or asset proofs rather than collateral. It also plans to deploy AI-powered lending agents to manage repayment enforcement and reduce interest rates.
• Wildcat, which provides undercollateralized loans tailored for market makers and trading firms. In the event of a default, Wildcat’s lenders coordinate independently to recover funds, according to advisor Evgeny Gaevoy.

Crypto lending remains a nascent but growing sector within the broader digital asset industry. Despite lingering concerns from the 2022 collapses of major firms like Celsius and Genesis, institutions such as JPMorgan Chase are exploring crypto-backed loans, signaling a cautious but renewed interest in the space.