Clearpool Raises US$3M Funding From Sequoia Capital India, Arrington Capital, GBV, HashKey Capital, Hex Trust, Sino Global Capital, & Wintermute to Build a Decentralized Capital Markets Ecosystem
Clearpool, a decentralized capital markets ecosystem, has announced a US$3 million investment round from Arrington XRP Capital, GBV Capital, HashKey Capital, Hex Trust, Sequoia Capital India, Sino Global Capital, and Wintermute. Other participants in the round include AscendEX, BCW Group, FBG Capital, Folkvang, Huobi Ventures, Kenetic Capital, Mentha Partners, Moonvault Capital, One Block Capital, MANTRA DAO, Panony, PARSIQ, Plutus VC, Skynet Trading, UNKNOWN VC and ZBS Capital.
Clearpool is building a decentralized capital markets ecosystem built on Ethereum, bringing a paradigm shift in the way institutions borrow uncollateralized liquidity. Clearpool was initially founded by Robert Alcorn and Alessio Quaglini, who later recruited Jakob Kronbichler as Co-Founder and CCO. The project is being incubated by Hex Trust, Asia’s leading digital asset custodian, who will provide custody and compliance services such as KYC, identity verification, and transaction monitoring for Clearpool’s borrowers.
“Clearpool introduces several new concepts to DeFi, including single borrower liquidity pools and a system of tokenized credit. These new concepts allow institutional borrowers to access uncollateralized liquidity directly from the DeFi ecosystem and provide lenders (LPs) with sophisticated risk management and hedging solutions to manage counterparty risk,” said Clearpool’s CEO & Co-founder Robert Alcorn.
DeFi lenders currently lack access to credit scores and risk profiles which are standard in traditional finance; Clearpool attacks this problem head-on. Clearpool’s protocol enables lenders to gauge borrowers’ creditworthiness better by providing lenders more access to the risk profile of institutional borrowers. Using a real-time credit scoring mechanism, liquidity providers can quickly and efficiently monitor, manage and hedge credit risks without compromising higher returns which DeFi unlocks.
Clearpool’s innovations open opportunities for institutional borrowers, such as traders and crypto hedge funds, to benefit from tools that previously were only available in traditional finance. Access to unsecured liquidity directly from the DeFi ecosystem — along with tokenization of credit — are the primitives necessary to unlock even more advanced derivative products that will further contribute to the emergence of a robust decentralized capital markets ecosystem.
Clearpool will be using the funds to continue building the protocol and launch additional features such as decentralized credit derivatives, providing LPs with more sophisticated risk management solutions. Clearpool will be holding a public sale of its native token ($CPOOL) at the end of October.
Jakob Kronbichler, Chief Commercial Officer & Co-founder of Clearpool, commented on the fundraise, “On the borrower side, we have seen great interest from some of the largest crypto trading firms, and we’re excited to have several industry leaders such as Wintermute and Folkvang among our investors. At the same time, we noticed substantial interest from institutional investors as well as individuals that are given the possibility to fund and participate in the success of these trading firms while earning stable and attractive returns.”
“We believe uncollateralized lending is the next frontier for DeFi primitives and solves a pronounced pain point for crypto-native borrowers. Clearpool is uniquely positioned through its partnerships with Hex Trust and Rob & Jakob’s strong TradFi/fintech backgrounds to dominate this segment and begin to serve the traditional Web 2 borrower/lender segments as well — the holy grail for most DeFi protocols today,” said Anandamoy Roychowdhary, Principal, Sequoia India.
“Bridging DeFi liquidity with TradFi counterparties via uncollateralized lending represents one of the great opportunities in crypto. We’re excited about Clearpool’s approach to bringing institutions on-chain, exposing them to the vast pool of crypto-native capital, and revealing the incredible innovations of DeFi,” said Michael Arrington, Partner at Arrington Capital.
Clearpool is a decentralized capital markets ecosystem where institutions can borrow uncollateralized liquidity, and LPs get attractive rewards and risk management solutions. Clearpool introduces several new concepts to DeFi, with the idea of single borrower liquidity pools and tokenized credit giving rise to sophisticated risk management and hedging solutions. Clearpool is revolutionizing debt capital markets; a paradigm shift in how institutions borrow uncollateralized liquidity is upon us.