• 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. 

Borrowers on the Clearpool protocol, typically institutions, can access unsecured liquidity, and eliminate risks of liquidation, significantly enhancing capital efficiency. Lenders (liquidity providers/LPs) on the Clearpool protocol, typically individual or institutional investors, are rewarded fairly for risk taking, with pool interest rates rising when risk increases, and falling when risk decreases. Clearpool lenders earn further rewards in the form of CPOOL tokens, enhancing overall APYs to market-leading levels.

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.”