Clearpool Launches Credit Vaults on Avalanche, Redefining On-chain RWAs

Clearpool launches Credit Vaults on Avalanche, offering flexible borrowing terms for DeFi users. Banxa partners with Clearpool to inaugurate the first Credit Vault, enabling access to up to USDT 5 million in borrowing capacity. Clearpool, a prominent decentralized finance (DeFi) player, has moved significantly by expanding its operations to Avalanche and introducing its latest product, [...]

Clearpool Launches Credit Vaults on Avalanche, Redefining On-chain RWAs
  • Clearpool launches Credit Vaults on Avalanche, offering flexible borrowing terms for DeFi users.
  • Banxa partners with Clearpool to inaugurate the first Credit Vault, enabling access to up to USDT 5 million in borrowing capacity.

Clearpool, a prominent decentralized finance (DeFi) player, has moved significantly by expanding its operations to Avalanche and introducing its latest product, Credit Vaults. This innovative offering aims to transform the landscape of on-chain credit markets by providing liquidity and flexibility to borrowers while offering attractive yields to lenders.

By giving borrowers control over the terms, such as interest rates and repayment schedules, Credit Vaults deviate from conventional lending methods. This flexibility creates opportunities for various on-chain borrowers, including fintech and payment companies, as they search for stable rates and increased liquidity. With Credit Vaults, Clearpool hopes to meet the changing needs of the DeFi community and achieve 100% usage of efficient lending APYs.

The partnership between Clearpool and Avalanche demonstrates a common dedication to promoting innovation in digital financial solutions. Avalanche is the perfect platform to facilitate the launch of Credit Vaults, according to Morgan Krupetsky, Senior Director of BD for Institutions and Capital Markets at Ava Labs. He highlights Avalanche’s role in promoting more utility within the Avalanche ecosystem.

Banxa Partners with Clearpool for Inaugural Credit Vault

The inaugural Credit Vault has been launched by Banxa and Clearpool, two well-known infrastructure providers that enable embedding crypto in the payments industry. Banxa will be able to borrow up to USDT 5 million thanks to this agreement, while lenders will benefit from further incentives in the form of AVAX tokens and a seven-day payback window. In order to satisfy its liquidity needs and draw in a larger lender base, Banxa plans to utilize Credit Vaults.

Credit Vaults’ debut in RWA-backed lending represents a major turning point because it provides the most liquid and short-term fintech pools. The use of cryptocurrency and DeFi by institutions is growing; Clearpool has seen a growth in demand from more than 20 organizations, including the massive Wall Street firm Jane Street. The fact that Banxa has entered the on-chain borrowing space indicates the increasing interest institutions are showing in Clearpool’s product line, as more are expected to follow.

Holger Arians, Chairman & CEO of Banxa, expresses enthusiasm for Clearpool’s Credit Vaults, citing their flexibility in meeting liquidity requirements. He emphasizes the seamless and efficient on-chain credit solution offered by Clearpool, underscoring Banxa’s commitment to developing its relationship with Clearpool amidst rising transaction volumes.

Cauris, an investment firm specializing in private credit for fintech companies, has been instrumental in structuring and managing the Credit Vault. With a focus on implementing robust security measures, including direct control over designated bank accounts and critical covenants, Cauris ensures the system’s integrity, safeguarding the interests of all stakeholders involved.

 


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