Decrypting DeFi is an e-mail newsletter from Decrypt. (Illustration: Grant Kempster).
Despite the fancy financial rails, a loan at DeFi is still a loan. We have seen this repeatedly, and last week's Curve Finance founder fiasco was another reason to write a term paper on the subject.

Now cryptocurrency startup Goldfinch has come to the forefront, aiming to lend to companies in emerging economies, with the latest example affecting the gaining popularity of the real assets sector.

Protocol issued a $5 million loan to fintech company Tugende Kenya in 2021, which expires in October this year.

Tugende provides local financing to small businesses in Kenya and Uganda through its eponymous subsidiaries. The company's main customers are rental companies or people who rent cars and scooters to finance their cab or delivery services.

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The purpose of the loan was to help Tugende, specifically Tugende Kenya, expand this offering.

However, late last month, the Goldfinch community was notified that the company had disbursed $1.9 million of that loan to Tugende Uganda. According to the terms of the loan, this was a breach that followed two previous breaches back in February.
 

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