Crypto Microloan Boom: USDC Lenders Thrive Under Trump’s Pro-Digital Asset Policies

Three years after a market crash devastated crypto lenders, a new generation of startups is aggressively re-entering the microloan space. These ventures are leveraging unsecured, tech-driven models to capitalize on renewed Optimism fueled by Donald Trump's pro-crypto agenda and the sector's strong recovery.

San Francisco-based Divine Research has emerged as a market leader, issuing over 30,000 uncollateralized microloans since December. In partnership with Sam Altman's Worldcoin, the firm utilizes biometric verification to provide sub-$1,000 loans in USDC to individuals excluded from traditional financial systems. Founder Diego Estevez describes their approach as "microfinance on steroids," serving diverse clients ranging from educators to small-scale vendors.

Despite experiencing a 40% default rate on initial loans, Divine maintains profitability through 20-30% interest rates and partial token recovery mechanisms. Their business model depends on individual depositors pursuing high yields—a characteristic high-risk, high-reward dynamic that highlights cryptocurrency's evolving role in alternative financial solutions.