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June 4, 2025 – 3Jane Protocol, a pioneering credit-based money market on Ethereum, today announced it has successfully raised $5.2 million in a seed funding round. The round was led by Paradigm, a leading crypto-focused investment firm, and saw participation from prominent investors including WMT Ventures, Coinbase Ventures, Breed VC, Robot Ventures, and Bodhi Ventures. This significant investment will accelerate 3Jane's mission to enable scalable and capital-efficient cryptonative credit creation, laying the foundation for the next era of decentralized finance.
The modern capitalist financial system relies on two core pillars for economic growth: a medium of exchange and the creation of credit. While stablecoins have convincingly delivered on the former over the past decade, the growth of decentralized finance (DeFi) has remained constricted by the absence of a scalable and capital-efficient mechanism for credit creation. Current DeFi lending is highly fragmented, with overcollateralized loans accommodating only a limited set of assets, and uncollateralized loans largely reserved for off-chain private credit firms or institutional market makers. Traditional banks, despite lower costs of capital, are unable or unwilling to underwrite cryptonative assets and cash flows due to regulatory and risk constraints.
"DeFi lending is highly fragmented - overcollateralized loans can only accommodate a limited set of DeFi assets, and uncollateralized loans are reserved for offchain private credit firms, institutional market makers, or reputation-based social circles," stated 3Jane Protocol. "Crypto growth remains constricted by the absence of a scalable, capital efficient mechanism."
3Jane Protocol addresses this critical gap by introducing a peer-to-pool credit-based money market that enables algorithmic, real-time unsecured USDC credit lines. Unlike traditional lending models, 3Jane extends capital underwritten against verifiable financial proofs of credit scores, the full spectrum of DeFi, CEX, and Bank assets, and future cash flows, rather than requiring on-chain collateral. This innovative approach unlocks significant capital efficiency and borrowing power for existing asset-rich yield farmers and traders, and crucially, empowers high-productivity, asset-light entities such as businesses and AI agents to access credit against their future productivity.
Key innovations of the 3Jane Protocol include:
- 0% Collateral Credit Lines: Borrowers can access USDC liquidity without posting upfront collateral, based on their creditworthiness and verifiable financial data.
- Comprehensive Underwriting: 3Jane integrates on-chain credit scoring models (via Cred Protocol and Blockchain Bureau) with off-chain VantageScore 3.0 credit scores (via zkTLS), enabling robust, risk-adjusted underwriting at scale.
- Broad Asset Recognition: The protocol recognizes and leverages a vast universe of crypto assets—including majors, altcoins, NFTs, farms, CDPs, money markets, staked assets, RWAs, and more across all EVM chains—alongside CEX and bank assets, and future cash flows. This unlocks an estimated $60 billion in productive capital across DeFi.
- USD3 & sUSD3 Yieldcoins: Suppliers deposit USDC to mint USD3, a stablecoin-denominated yieldcoin with a senior claim on interest repayments. Optionally, they can stake USD3 for sUSD3, which offers levered yield while absorbing first-losses.
- Protocol Solvency: 3Jane maintains solvency through on-chain auctions where licensed U.S. collections agencies can bid on non-performing debt, providing a scalable mechanism for unsecured credit.
"3Jane protocol is a peer-to-pool credit-based money market enabling algorithmic, real-time unsecured USDC credit lines to yield farmers, traders, businesses, and AI agents," 3Jane Protocol elaborated. "This unlocks a new era of capital efficiency, enabling significant borrowing power for existing asset-rich entities and more importantly empowering a new class of high-productivity entities to borrow on credit, driving cryptonative economic expansion."
The funding will accelerate 3Jane's deliberately sequenced rollout, beginning with refining its underwriting algorithm (3CA) using granular data, followed by opening USD3/sUSD3 deposits, and extending unsecured credit lines to a curated cohort of high-signal wallets. This phased approach ensures disciplined risk management while progressively expanding credit capacity.
3Jane Protocol is poised to become the internet-native financial system, free from traditional bank liquidity constraints, by enabling economic expansion backed by future growth. The long-term vision includes shifting underwriting towards pure cash-flow based financing and enabling programmatic stablecoin lines of credit for AI agents, envisioning a future where AI agents can access capital against their future productivity.
About 3Jane Protocol:
3Jane Protocol is a credit-based money market on Ethereum enabling unsecured lines of credit underwritten against verifiable proofs of crypto & bank assets, future cash flows, and credit scores. By expanding access to unsecured credit, 3Jane unlocks a new era of capital efficiency, empowering a new class of high-productivity economic actors—including cryptonative sole proprietors, businesses, and AI agents—to borrow against future productivity.
About Paradigm:
Paradigm is a crypto-focused investment firm that invests in companies and protocols building the future of the decentralized web. With a deep understanding of the crypto ecosystem, Paradigm supports visionary projects that push the boundaries of technology and finance.
Compiled by CMO Intern team
