Clearpool To Launch New Institutional-Grade Marketplace Clearpool Prime In Q1
- Protocol for decentralized financing The forthcoming introduction of Clearpool Prime, a new institutional-grade marketplace, was announced by Clearpool.
- The marketplace will allow institutions to borrow and lend digital assets on a large scale in a safe, legal environment while also providing market players with liquidity and competitive pricing.
Decentralized lending protocol Clearpool announced the upcoming launch of its new institutional-grade marketplace, Clearpool Prime.
Clearpool Prime, which is scheduled to go operational in Q1, will allow institutions to borrow and lend digital assets on a large scale in a safe, legal environment while also providing market players with liquidity and competitive pricing.
In order to enable institutions to borrow cryptoassets without over-collateralization, Robert Alcorn, a former trader at an investment bank, and Alessio Quaglini, CEO of Hex Trust, established Clearpool in June 2021.
Since overcollateralization is exceedingly capital inefficient, institutional borrowers prefer unsecured debt, which makes up the vast bulk of the world’s debt. Therefore, while the current huge overcollateralized lending protocols (i.e. AAVE, MakerDAO, Compound) make sense for individual, pseudonymous users, they do not work for larger borrowers who need to have options for uncollateralized borrowing in order to truly be driven to come on-chain.
By developing the first dynamic marketplace for uncollateralized institutional liquidity, Clearpool is meeting this demand. It offers these larger players the choice of borrowing from large, liquid pools of crypto-native capital or receiving higher risk-adjusted returns and lower counterparty risk on the money they lend out, as well as programmability, flexibility, transparency, and reduced execution, brokerage, underwriting, and sales/marketing time and costs.
The introduction of Clearpool’s first permissioned pool in collaboration with Jane Street and BlockTower last year signals the advancement of institutional pools to the next stage, which is represented by the Prime marketplace.
The need for compliant access to DeFi has increased since that time. The development of decentralized capital markets will be supported and facilitated by Prime, which was developed, tested, and audited to fulfill institutional needs.
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