Projective Finance has launched a $7 million onchain lending pool dedicated to funding solar energy projects in Illinois public schools. This initiative allows decentralized finance (DeFi) investors to directly participate in municipal infrastructure projects within the United States. The lending pool will finance the installation of solar energy systems across various school districts in Illinois, with all infrastructure loans executed onchain.
According to Projective Finance, leveraging blockchain technology streamlines the traditional financing process. Co-founder Josh Chinnaswamy stated that blockchain enables direct access and full transparency, eliminating the need for multiple intermediaries, fund structures, and substantial minimum investments.
Illinois has made significant strides in solar energy, with over 4,700 megawatts of operating solar capacity installed throughout the state as of June. Projective Finance's platform focuses on government-backed renewable energy initiatives, allowing investors to engage in projects with high credit ratings and a lower risk of default. Unlike many DeFi platforms, Projective Finance does not offer exposure to cryptocurrencies. Instead, it concentrates on tokenizing real-world assets (RWAs).
The platform's infrastructure is built on Avalanche, a layer-1 blockchain known for its scalability and interoperability, developed by Ava Labs. Accredited investors can participate in Projective's lending pool using the USDC stablecoin. The State of Illinois will act as the guarantor for the lending pool, and all participating projects will be evaluated by Moody's credit rating agency.
