Clearpool Expands to Avalanche, Launches the First Credit Vault

Clearpool, a leading on-chain credit marketplace, announced on Tuesday, April 2nd, that it has expanded its services to Avalanche, with an exclusive launch of its new real-world asset (RWA)-backed product, Credit Vaults. 

In a press release shared with Cryptowisser, Clearpool said its Credit Vaults cater to the influx of new on-chain borrowers, including fintech and payment companies, through stable rates and stickier liquidity. 

Credit Vaults allows borrowers to set their own terms, such as interest rates and repayment frequencies. The service also enables higher lending APYs via 100% utilization, increasing lending volume and protocol revenue and making interest rates for lenders more efficient.

While commenting on this expansion, Morgan Krupetsky, Senior Director of BD for Institutions and Capital Markets at Ava Labs, said,

“Avalanche is the ideal platform to support the launch of Clearpool’s Credit Vaults. 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.”

Credit Vaults Introduces Short-term & Liquid Fintech Pools to DeFi

Clearpool also announced that it has partnered with Banxa, a publicly listed (TSX.V: BNXA, OTCQX: BNXAF) global infrastructure provider enabling embedded crypto in the payments space, to launch the first Credit Vault.

Thanks to this partnership, 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. Clearpool added that, unlike its competitors, Credit Vault lenders can request fund withdrawals within as little as seven days. 

More Institutions are Adopting Clearpool

Clearpool pointed out that the launch of Credit Vaults is an important milestone in the RWA space as it provides the most liquid and short-term fintech pools in the market. Credit Vaults is attracting institutional interest, with Clearpool revealing that more than 20 institutions have already borrowed on the platform, including Wall Street giant Jane Street.

The team added that Banxa's recent entry to on-chain borrowing further emphasizes the growing interest in its product offerings, with several institutions in the pipeline set to follow. 

Clearpool intends to bridge the gap between the traditional private credit market and the decentralized lending ecosystem. 

Jakob Kronbichler, CEO & Co-founder of Clearpool commented that

“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.” 

Banxa Leads the Charge for Credit Vaults Adoption

As the first to adopt Credit Vaults, Banxa is the trusted partner of choice for businesses seeking to take ownership of their crypto journey. The company 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. 

While commenting on their role in the Credit Vaults launch, Holger Arians, Chairman & CEO of Banxa, said,

"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." 

Clearpool revealed that Cauris, an investment firm specializing in private credit for financial technology companies, has structured, will manage, and is the servicer for the Credit Vault. The firm has implemented security measures, including direct control over designated bank accounts for fund flow and critical covenants, to ensure the integrity of the system.

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. 

Since launching 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. 

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. 

Finally, Banxa 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.