Clearpool, a decentralized capital markets ecosystem, is partnering with X-Margin, the platform facilitating credit to trading firms, to enable institutions to borrow from their own dedicated and transparent lending pool. Clearpool operates globally, but it’s main location is Singapore.
The partnership allows institutional borrowers to access lenders via a dedicated pool, and justify their credit by providing privacy preserving and neutral credit risk metrics. Tokenizing the credit provided to the pool will enable lenders to manage credit risk more actively, and the data provided by X-Margin lays the foundation for a secondary market.
Robert Alcorn, CEO of Clearpool, said in a statement: “We’re opening up credit in the DeFi space, enabling borrowers to improve capital efficiency. Our partnership with X-Margin will be the catalyst to data-driven credit markets and the development of exciting new instruments such as credit derivatives. It’s a major advance in the maturity of crypto and DeFi markets.”
Clearpool is building a decentralized capital markets ecosystem, underpinned by its native token (CPOOL), where institutional borrowers can access unsecured liquidity. It is the first marketplace for unsecured institutional capital.
Borrowers on the Clearpool protocol, typically institutions, can access unsecured liquidity, and eliminate risks of liquidation, significantly enhancing capital efficiency. Lenders (liquidity providers/LPs) on the Clearpool protocol, typically individual or institutional investors, are rewarded fairly for risk taking, with pool interest rates rising when risk increases, and falling when risk decreases. Clearpool lenders earn further rewards in the form of CPOOL tokens, enhancing overall APYs (annual percentage yields).
Clearpool is backed by investors from both traditional venture capital and blockchain including Sequoia Capital India, Arrington Capital, Sino Global Capital, among others. X-Margin Credit is a complete platform for counterparty due diligence, encompassing KYC, financial statement analysis, and real-time risk monitoring across borrower portfolios.
Darshan Vaidya, CEO of X-Margin, said in a statement: “Giving lenders visibility and control over their credit risk will open up the access to capital in the digital asset space, and in turn lead to a more efficient and liquid market.”