Credix To Launch $150 Million Stablecoin Credit Pool For Digital Lender Clave
A $150 million stablecoin credit pool was unveiled by Credix Finance, a decentralized credit marketplace, to Clave, a digital lending platform, to originate loans for consumers and businesses in Latin America.
The USDC stablecoin, which is tethered to the dollar, will be used as the currency for the loan when the credit facility opens in 2023. The Clave debt pool, like all Credix credit pools, will be divided into numerous smaller funds known as “tranches” to provide investment options for institutional investors with diverse return-on-risk profiles; for instance, tranches with lesser risk would pay less yield.
Through on-chain transactions and smart contracts, Clave will receive funds in USDC into the company’s cryptocurrency wallet, which it can then convert to any kind of traditional currency in.
Credix links institutional investors like hedge funds and family offices
Credix links institutional investors like hedge funds and family offices looking for yield with fintech startups and non-bank lenders that want funding to make loans to its users. According to information from the decentralized finance data site DefiLlama, the Belgian company has a $26 million USDC-based outstanding credit on the Solana blockchain.
In Argentina and Colombia, Clave creates loans for consumers and enterprises, and it has ambitions to do the same in Mexico the next year.
The alliance comes as real-world assets like conventional loans, mortgages, and government bonds are being brought and tokenized onto the blockchain by crypto businesses. As a result, the traditional debt market and the cryptocurrency market are gradually merging.
Recently, $500 million in U.S. Treasury bonds were added to Maker’s reserve, one of the biggest decentralized finance (DeFi) protocols in the cryptocurrency space, to support the DAI stablecoin.
The receivables from the borrowers who take out loans serve as collateral for Clave’s debt from the Credix credit pool, according to Finizola. Technically speaking, however, the debt is unsecured, which means that the debtor uses its good standing and sound financial position to secure the loan rather than pledging any assets whose worth would serve as a backup in the event of a failure.
Unsecured lending is a common practice in traditional banking and is becoming more popular on DeFi lending protocols, however recent defaults show that there are many difficulties and dangers to applying it in a market as new and unstable as crypto.
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