Consumer Lending Process to Go On-Chain... Tare Aims to Cut Intermediary Costs

Kevin Miao, co-founder and CEO of Tare, proposed integrating the entire consumer lending process—execution, repayment management, and securitization—onto a blockchain to cut intermediary costs. Speaking at the Avalanche Summit 2026 in New York on September 16-17, Miao argued that rebuilding consumer lending infrastructure on-chain is necessary.

Avalanche's official summit materials highlighted tokenized assets and on-chain finance as key topics. Current consumer lending involves multiple intermediaries including banks, lending service providers, and securitization institutions, with costs and processing times reflected in borrower interest rates and loan accessibility, Miao explained.

Tare believes tokenization and smart contracts can automate loan execution, repayment collection, compliance verification, and investor allocation. By recording loan assets and related processes on blockchain, the platform aims to reduce information asymmetry and manual work among participants. Tare is developing a platform connecting loan execution systems, loan management systems, and a digital investment hub through a shared ledger.

The system will allow lenders and investors to transact based on the same ledger, creating an integrated structure from loan origination to management and funding. The loan execution system supports borrower assessment and fund disbursement, while the loan management system handles repayments and compliance tasks. The investment hub enables investors to analyze, purchase, and manage loan assets.

Tare plans to apply this infrastructure to its U.S.-based unsecured personal lending business, Tare Credit LLC. After operating the platform for its own lending operations, the company intends to offer the technology to third-party lenders and investors. Miao, who founded BlockTower Credit in 2022, was introduced as a key figure behind the firm.

Tare reported that assets under management for its private credit fund have grown to $1.9 billion (approximately KRW 2.624 trillion), though independent primary data supporting this figure has not been verified.

This discussion aligns with Avalanche's broader strategy to expand its infrastructure focus toward financial institutions and enterprises. Avalanche's official post noted Miao plans to evaluate whether on-chain approaches are genuinely better in practice. Similar initiatives in the lending sector include Aave, which deployed Aave V4 on Avalanche on July 15, combining shared liquidity hubs and asset-specific markets. Aave reported cumulative inflows exceeding $15 billion (approximately KRW 2.0715 trillion) on Avalanche.

While this figure represents Aave's liquidity on Avalanche, it is separate from Tare's consumer lending business scale. Domestic examples of similar initiatives include Figure, which has operated a consumer lending marketplace combining loan execution, secondary distribution, and on-chain asset tokenization—a point of overlap with Tare's proposal.

Tokenization refers to representing financial assets or rights as digital tokens on blockchain. On-chain lending involves processing key procedures such as loan execution, repayment, and investor allocation directly on a blockchain network. However, tokenization does not immediately translate to lower borrower interest rates. Actual cost savings, regulatory compliance methods, credit assessment systems, default management, and data privacy issues require separate validation.

Tare's announcement presents the technical feasibility and business structure for moving consumer lending onto-chain. Whether it will effectively reduce financial costs and improve loan accessibility remains to be determined after Tare's service operations are publicly evaluated.