Clearpool, a leading on-chain credit marketplace, is thrilled to announce the launch of Credit Vaults on Avalanche. This unique offering is backed by real-world assets (RWAs) and aims to cater to the influx of new on-chain borrowers, including fintech and payment businesses.
Credit Vaults provide borrowers with steadier rates and more stable liquidity. Clearpool’s permissionless pools have already introduced private credit yield to DeFi for trading firms and market makers. With Credit Vaults, borrowers have the freedom to choose their own terms, including interest rates and payment frequency. Additionally, through 100% utilization, Credit Vaults offer higher lending APYs, which boost lending volume and protocol revenue, while also improving the efficiency of lender interest rates.
Morgan Krupetsky, Senior Director of BD for Institutions and Capital Markets at Ava Labs, expressed excitement about the introduction of DeFi to short-term and liquid fintech pools.
In collaboration with Clearpool, Banxa, a globally recognized infrastructure provider facilitating embedded cryptocurrency in the payments industry, will be the first to offer a Credit Vault. Banxa will have the opportunity to borrow up to USDT 5 million through the Credit Vault, while lenders will benefit from a seven-day payback window and extra rewards in AVAX tokens.
In traditional finance, lenders often face medium- to long-term lockups when investing in receivable financing prospects. However, DeFi consumers are increasingly attracted to more liquid options. By participating in Credit Vaults, lenders can seek fund withdrawals in as short as seven days, unlike other on-chain fintech lending pools.
The introduction of Credit Vaults is a significant milestone in the RWA landscape. Clearpool is at the forefront of this transformation, with over 20 institutions already borrowing on the platform, including renowned Wall Street firm Jane Street. The recent entry of Banxa into the on-chain borrowing space further demonstrates the growing interest in Clearpool’s product offerings. More institutions are expected to follow suit. Clearpool’s goal is to bridge the gap between the decentralized lending ecosystem and the conventional private credit market, which is currently valued at $1.5 trillion and projected to reach $2.3 trillion by 2027, according to Morgan Stanley.
Jakob Kronbichler, CEO & Co-founder of Clearpool, emphasized the pioneering nature of Credit Vaults in the embedded crypto provider sector.
Banxa, a publicly traded company founded in 2014 and listed on the TSX.V and OTCQX, is the leading partner for companies seeking to take control of their cryptocurrency journey. With a vast network of local and international payment solutions and regulatory permits, Banxa helps companies integrate fiat and cryptocurrency payments for global audiences, with reduced costs and higher conversion rates. With approximately AUD$3.4 billion in transactions and significant year-over-year growth, Banxa is the top global infrastructure provider enabling crypto integration.
Holger Arians, Chairman & CEO of Banxa, expressed their partnership’s importance in facilitating the adoption of Credit Vaults.
Cauris, an investment business specializing in providing private credit to fintech firms, is responsible for structuring, managing, and servicing the Credit Vault. They have implemented security measures like direct control over specified bank accounts for fund flow and crucial covenants to ensure the system’s integrity.
The introduction of Credit Vaults on Avalanche by Clearpool marks a paradigm shift in the on-chain RWA landscape. Clearpool is leading the way in ushering in a new era of institutional borrower profiles in DeFi.
