Clearpool, a leading on-chain credit marketplace, is thrilled to announce its expansion to Avalanche with an exclusive launch of its new real-world asset (RWA)-backed product, Credit Vaults.
While Clearpool’s permissionless pools brought private credit yield to DeFi, especially for trading firms and market makers as borrowers, Credit Vaults cater to the influx of new on-chain borrowers, including fintech and payment companies, through stable rates and stickier liquidity.
With Credit Vaults, Clearpool empowers borrowers to set their terms, such as interest rates and repayment frequencies. Credit Vaults also enable higher lending APYs via 100% utilization, increasing lending volume and protocol revenue and making interest rates for lenders more efficient.
“Avalanche is the ideal platform to support the launch of Clearpool’s Credit Vaults,” said Morgan Krupetsky, Senior Director of BD for Institutions and Capital Markets at Ava Labs. “The collaboration with Clearpool showcases a mutual commitment to developing innovative digital financial products and a shared focus on bringing tokenized assets and greater utility into the Avalanche ecosystem.”
Bringing Short-term & Liquid Fintech Pools to DeFi
Banxa, a publicly listed (TSX.V: BNXA, OTCQX: BNXAF) global infrastructure provider enabling embedded crypto in the payments space, has joined forces with Clearpool to launch the inaugural Credit Vault. The Credit Vault will enable Banxa to start by borrowing up to USDT 5 million, with lenders benefiting from the flexibility of a seven-day repayment window and additional rewards paid in the AVAX token.
Typically, investing in receivable financing opportunities involves medium to long-term lockups for lenders, particularly in activities such as trade financing or invoice financing. While this time horizon aligns with the traditional credit world, there is a growing preference among DeFi users for more liquid alternatives. Unlike competing on-chain fintech lending pools, Credit Vault lenders can request fund withdrawals within as little as seven days.
Institutional Adoption Accelerating on Clearpool
The launch of Credit Vaults is a significant milestone in the RWA space, providing the most liquid and short-term fintech pools in the market. The institutional adoption of crypto and DeFi is rapidly gaining momentum and seeing increased demand for on-chain credit. With over 20 institutions already having borrowed on the platform, including Wall Street giant Jane Street, Clearpool is at the forefront of this trend.
Banxa’s recent entry to on-chain borrowing further emphasizes the growing interest in Clearpool’s product offerings, with several institutions in the pipeline set to follow. Clearpool’s mission is to bridge the gap between the traditional private credit market (currently $1.5 trillion and expected to reach $2.3 trillion by 2027, according to Morgan Stanley) and the decentralized lending ecosystem.
“Launching Credit Vaults on Avalanche marks a major milestone for Clearpool and the RWA sector as we pioneer migrating credit on-chain. Working with prominent players such as the listed fintech, Banxa, and experienced credit fund, Cauris, validates the enormous potential of Credit Vaults to revolutionize the RWA DeFi space and drive institutional adoption,” said Jakob Kronbichler, CEO & Co-founder of Clearpool.
Leading Embedded Crypto Provider Pioneers Credit Vaults
Founded in 2014 and publicly listed (TSX.V: BNXA, OTCQX: BNXAF), Banxa is the trusted partner of choice for businesses seeking to take ownership of their crypto journey. It helps businesses integrate crypto and fiat payments for global audiences with lower fees and higher conversion rates through an extensive network of global and local payment solutions and regulatory licenses. With immense year-on-year growth and ~AUD$3.4 billion in transactions, Banxa is the leading global infrastructure provider enabling embedded crypto.
“Clearpool’s Credit Vaults offer us the flexibility to meet our liquidity requirements, allowing us to set our own terms and attract a wider range of lenders. With their seamless and efficient on-chain credit solution, we are excited to develop our relationship with Clearpool as our demand for working capital continues to grow with rapidly rising transaction volumes,” said Holger Arians, Chairman & CEO of Banxa.
Cauris, an investment firm specializing in private credit for financial technology companies, has structured, will manage, and is the servicer for the Credit Vault. Specifically, they have implemented security measures, including direct control over designated bank accounts for fund flow and critical covenants, to ensure the integrity of the system.
Clearpool’s launch of Credit Vaults on Avalanche signals a paradigm shift in on-chain RWAs. Clearpool is at the forefront of this shift, ushering in a new era of institutional borrower profiles in DeFi.
About Clearpool
Clearpool is the leading decentralized finance credit marketplace. A permissionless protocol enables institutions to raise unsecured liquidity directly from DeFi markets, while a separate fully permissioned platform, Clearpool Prime, further meets the compliance needs for wholesale borrowing and lending of digital assets by institutional market participants. Liquidity providers on Clearpool earn attractive yields, with pool interest rates enhanced by additional rewards paid in CPOOL — the protocol’s utility and governance token. Clearpool LP tokens, called cpTokens, are the building blocks for a system of tokenized credit and on-chain risk management.
Launched in March 2022, Clearpool has originated over US$480 million in loans with a growing user base spanning both crypto and TradFi institutions such as Wintermute, Jane Street, Fasanara Digital, CoinShares, and others. The protocol launched on the Ethereum mainnet in March 2022, followed by the expansion to Polygon PoS in July 2022, Polygon zkEVM in July 2023, Optimism in October 2023, and Mantle Network in February 2024.
About Avalanche
Avalanche is a smart contracts platform that scales infinitely and regularly finalizes transactions in less than one second. Its novel consensus protocol, Subnet infrastructure, and HyperSDK toolkit enable Web3 developers to easily launch powerful, custom blockchain solutions. Build anything you want, any way you want, on the eco-friendly blockchain designed for Web3 devs.
About Banxa
Banxa (TSX.V: BNXA, OTCQX: BNXAF) is the leading infrastructure provider for enabling embedded crypto – empowering businesses to take control of their crypto journey. Through an extensive and growing network of global and local payment solutions and regulatory licenses, Banxa helps businesses provide seamless integration of crypto and fiat for global audiences with lower fees and higher conversion rates. Headquartered in the USA, Europe, and Asia-Pacific, the Banxa team is building for a world where global commerce is run on digital assets.