X-Margin and Clearpool Partner to Bring Transparent Lending to Institutions Trading Digital Assets
- Partnership to unlock uncollateralized credit for institutional crypto trading, using Clearpool’s innovative protocol mechanics
- Tokenized credit to open up secondary market and new products such as credit derivatives
Clearpool, a decentralized capital markets ecosystem, is partnering with X-Margin, the platform facilitating credit to trading firms, to enable institutions to borrow from their own dedicated and transparent lending pool.
Clearpool will integrate X-Margin’s privacy preserving technology to measure and publish institutional borrower creditworthiness, enabling borrower pools to present an accurate risk score without revealing sensitive information. The partnership will enhance capital access for creditworthy institutions trading digital assets, while providing lenders with data that enables informed capital allocation across a diverse selection of borrowers.
Robert Alcorn, CEO of Clearpool, said: “We’re opening up credit in the DeFi space, enabling borrowers to improve capital efficiency. Our partnership with X-Margin will be the catalyst to data-driven credit markets and the development of exciting new instruments such as credit derivatives. It’s a major advance in the maturity of crypto and DeFi markets.”
The partnership allows institutional borrowers to access lenders via a dedicated pool, and justify their credit by providing privacy preserving and neutral credit risk metrics. Tokenizing the credit provided to the pool will enable lenders to manage credit risk more actively, and the data provided by X-Margin lays the foundation for a robust secondary market.
Clearpool is building a revolutionary decentralized capital markets ecosystem powered by its native token (CPOOL) where institutional borrowers can access unsecured liquidity and is the first dynamic marketplace for unsecured institutional capital. Merging the sophistication of traditional capital markets with the benefits of decentralization, Clearpool significantly improves the landscape for both borrowers and lenders.
Clearpool is backed by a long list of top investors from both traditional venture capital and blockchain including Sequoia Capital India, Arrington Capital, Sino Global Capital, Hex Trust, Huobi Ventures, Kenetic, HashKey, and many more. Several of the top crypto trading institutions are also investors including Wintermute and Folkvang Trading.
X-Margin Credit is a complete platform for counterparty due diligence, encompassing KYC, financial statement analysis, and real-time risk monitoring across borrower portfolios. Lenders gain security through X-Margin Credit’s increased visibility of risk and through optional programmatic governance of funds. Among its users are Ledger Prime, Dunamis Trading, GSR and Wintermute Trading.
Darshan Vaidya, CEO of X-Margin, said: “We share with Clearpool the same vision for managing credit risk and we’re particularly excited about how our partnership with Clearpool can play a key part in tokenizing credit, allowing a new market to develop. Giving lenders visibility and control over their credit risk will open up the access to capital in the digital asset space, and in turn lead to a more efficient and liquid market.”
Clearpool is a Decentralized Capital Markets Ecosystem, where institutional borrowers can create single borrower liquidity pools and compete for uncollateralized liquidity directly from the DeFi ecosystem. Liquidity providers on Clearpool can earn attractive yields, with pool interest rates enhanced by additional LP rewards paid in CPOOL — Clearpool’s utility and governance token. Clearpool LP tokens, called cpTokens, are the building blocks for a system of tokenized credit that will provide Clearpool LPs with risk management and hedging capabilities. As more institutions begin to realize the benefits that decentralized finance can bring to their organizations, Clearpool will provide the new architecture to facilitate flows between the $120 trillion traditional capital markets, and the burgeoning DeFi ecosystem.
X-Margin Credit enables data-driven lending for institutional capital. X-Margin has developed a privacy-preserving risk engine for institutions to access trading leverage and for lenders to have real-time risk monitoring without borrowers needing to reveal commercially sensitive information. X-Margin Credit currently monitors $2.4 billion of borrowers’ net trading positions. In September, X-Margin raised $8 million in a Series A funding round backed by leading digital asset investors and the industry’s most active trading institutions such as Coinbase Ventures, DCG, HashKey Capital, Polychain and Spartan Group. For more information on X-Margin and its technologies, please visit www.xmargin.io
Sam Ameen — Clearpool
Damien Fletcher and Simon Packard — Streets Consulting
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