Clearpool Ventures into Avalanche with Banxa Launching Inaugural Credit Vault

Leading on-chain credit marketplace Clearpool is excited to announce the debut of Credit Vaults, a unique offering backed by real world assets (RWAs), as part of its expansion into Avalanche.

Credit Vaults provide steadier rates and stickier liquidity to accommodate the flood of new on-chain borrowers, including fintech and payment businesses, whereas Clearpool’s permissionless pools introduced private credit yield to DeFi, particularly for trading firms and market makers as borrowers. Clearpool gives borrowers the ability to choose their own terms, including interest rates and frequency of payments, using Credit Vaults. Through 100% utilization, Credit Vaults also provide larger lending APYs, boosting lending volume and protocol revenue while improving the efficiency of lender interest rates.

Morgan Krupetsky, Senior Director of BD for Institutions and Capital Markets at Ava Labs stated:

“Avalanche is the ideal platform to support the launch of Clearpool’s Credit Vaults. The collaboration with Clearpool showcases a mutual commitment to developing innovative digital financial products and a shared focus on bringing tokenized assets and greater utility into the Avalanche ecosystem.”

Introducing DeFi to Short-Term & Liquid Fintech Pools

Banxa, a globally recognized infrastructure provider that facilitates embedded cryptocurrency in the payments industry and is publicly traded (TSX.V: BNXA, OTCQX: BNXAF), has partnered with Clearpool to provide the first Credit Vault. Banxa will be able to begin borrowing up to USDT 5 million via the Credit Vault, while lenders will gain from a seven-day payback window and extra benefits given in AVAX tokens.

Lenders often incur medium- to long-term lockups when investing in receivable financing prospects, especially when it comes to trade finance or invoice financing. Although this time horizon corresponds with the realm of conventional finance, DeFi consumers are increasingly drawn to options that are more liquid. Lenders participating in Credit Vault may seek fund withdrawals in as short as seven days, in contrast to other on-chain fintech lending pools.

Clearpool’s Institutional Adoption is Speeding up

Introducing Credit Vaults, which offers the market’s most liquid and short-term fintech pools, is a major turning point in the RWA landscape. With the growing institutional acceptance of cryptocurrency and DeFi, there is a greater need for on-chain credit. Clearpool is leading this trend, with over 20 institutions having previously borrowed on the platform, including Wall Street heavyweight Jane Street. The fact that Banxa recently entered the on-chain borrowing space highlights the increasing interest in Clearpool’s product offerings. More institutions are expected to follow. The goal of Clearpool is to close the gap between the decentralized lending ecosystem and the conventional private credit market, which is presently valued at $1.5 trillion and is predicted to grow to $2.3 trillion by 2027, according to Morgan Stanley.

Jakob Kronbichler, CEO & Co-founder of Clearpool stated:

“Launching Credit Vaults on Avalanche marks a major milestone for Clearpool and the RWA sector as we pioneer migrating credit on-chain. Working with prominent players such as the listed fintech, Banxa, and experienced credit fund, Cauris, validates the enormous potential of Credit Vaults to revolutionize the RWA DeFi space and drive institutional adoption.”

Pioneers Credit Vaults: Top Embedded Crypto Provider

Banxa, a publicly traded company that was founded in 2014 and is listed on the TSX.V and OTCQX, is the go-to partner for companies looking to take control of their cryptocurrency journey. Through a vast network of local and international payment solutions and regulatory permits, it assists companies in integrating fiat and cryptocurrency payments for worldwide audiences with reduced costs and greater conversion rates. With ~AUD$3.4 billion in transactions and tremendous year-over-year growth, Banxa is the leading worldwide infrastructure provider that makes crypto integration possible.

Holger Arians, Chairman & CEO of Banxa stated:

“Clearpool’s Credit Vaults offer us the flexibility to meet our liquidity requirements, allowing us to set our own terms and attract a wider range of lenders. With their seamless and efficient on-chain credit solution, we are excited to develop our relationship with Clearpool as our demand for working capital continues to grow with rapidly rising transaction volumes.”

Cauris is an investment business that specializes in providing private credit to financial technology firms. It is responsible for structuring, managing, and servicing the Credit Vault. To guarantee the integrity of the system, they have specifically put in place security measures like direct control over specified bank accounts for fund flow and crucial covenants.

The introduction of Credit Vaults by Clearpool on Avalanche marks a change in the on-chain RWA paradigm. A new age of institutional borrower profiles in DeFi is being ushered in by Clearpool, who is leading the way in this transformation.