Image default
Crypto

DeFi Protocol Clearpool Chooses Polygon Network for Its Institutional Lending Platform

Facebook iconLinkedin iconTwitter iconClearpool Prime institutional DeFi credit marketplace

Clearpool Prime is set be released in the first quarter of the year. (Clearpool)

Consensus 2023 LogoJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your SeatFacebook iconLinkedin iconTwitter iconConsensus 2023 LogoJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your Seat

Decentralized finance (DeFi) protocol Clearpool will deploy its institutional credit platform Prime exclusively on Ethereum scaling tool Polygon network, the protocol told CoinDesk in a statement.

“We have been working closely with the Polygon team since we launched the permissionless protocol on Polygon in June,” Rob Alcorn, CEO and co-founder of Clearpool, said in an email. “We have a strong relationship and continue to work together to deliver institutional DeFi products.”

Clearpool Prime will act as an institutional-grade capital marketplace, where borrowers can create credit pools, and liquidity providers can invest to earn yield. The platform is set to start operating in the first quarter of this year, CoinDesk reported earlier.

“Expect to see a wide range of borrower profiles: from traditional trading firms to various types of crypto-native players,” Jakob Kronbichler, Clearpool’s co-founder and chief operating officer, said in a statement. “Prime is also attractive to fintechs that provide lending solutions in the TradFi (traditional finance) world, such as loans in emerging markets.”

On Monday, the protocol also opened the onboarding and whitelisting process for institutional borrowers and lenders, who must endure know-your-customer (KYC) checks to be fully compliant, according to the protocol’s press release.

Clearpool’s move to build on Polygon is significant because borrowing and lending activity on competitor protocols like Maple and TrueFi mostly happened on Ethereum’s network.

Polygon is a sidechain for Ethereum that offers cheaper, faster transactions by batching transfers on its proprietary proof-of-stake blockchain while relying on Ethereum’s network for security. It has secured notable partnerships recently with Instagram and Starbucks.

Clearpool Prime’s launch highlights a growing trend of decentralized lending protocols catering to institutional capital with TradFi-compatible products after last year’s crypto implosion wiped out most of its businesses. Clearpool’s loan book has plummeted below $10 million from $108 million since November, data by DefiLlama shows.

Colin Butler, Polygon’s global head of institutional capital, predicted that 2023 will be a pivotal year for institutional decentralized finance on this week’s CoinDesk’s Money Reimagined podcast.

MATIC, Polygon’s native token, has been among the best performers of the top 10 cryptocurrencies this year, gaining some 68% since Jan. 1, CoinDesk data shows.

DISCLOSURE

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Trending1Grayscale's new ad campaign in New York's Penn Station. (Nikhilesh De/CoinDesk)MarketsGrayscale’s GBTC Discount Widens to Near-Record HighFeb 13, 20232Se enviaron a exchanges alrededor de US$52 millones en BUSD en un período de 24 horas. (CryptoQuant)MercadosToken BNB cae por debajo de US$300 e ingresos de Binance indican señales bajistasFeb 13, 20233Oficinas de Banco do Brasil en Brasilia, Brasil. (Henrique Dias/Unsplash)NegociosEl banco público más importante de Brasil ahora permite pagar impuestos con criptomonedasFeb 13, 20234CDCROP: Spinning mixer in water creating bubbles (Getty Images)FinanceSanctioned Mixer Blender Re-Launched as Sinbad, Elliptic SaysFeb 13, 2023

Source coindesk.com

Related posts

4 Things Blockchain Analysts Are Saying About the Ethereum Merge

Blake Goodwin

Bitcoin Holds Steady Above $28K, Ether Rises in Post-Rate Hike Rally

Blake Goodwin

Ether Tops $2K After Shanghai Upgrade, Outshines Bitcoin

Blake Goodwin

Leave a Comment