On-chain lending platforms should consider introducing off-chain asset custody proofs to enhance credit building. Integrating verified off-chain assets, such as tokenized real-world assets or custodial attestations, can increase trust and transparency. These proofs allow lenders to assess borrowers’ creditworthiness more accurately by incorporating external financial data, reducing risk and enabling competitive loan terms. Smart contracts can securely link off-chain proofs to on-chain profiles, ensuring data integrity. However, challenges like privacy concerns and regulatory compliance must be addressed to balance transparency with user protection. Implementing such a system could attract institutional capital and broaden DeFi adoption, fostering a robust credit ecosystem.