Decentralized capital markets ecosystem, Clearpool, has partnered with X-Margin to allow firms to borrow funds from their transparent lending pool.
The partnership deal will see Clearpool integrate the privacy-preserving technology of X-Margin, which facilitates credit to trading firms.
According to reports, the partnership will help credit-worthy institutions that trade in digital assets gain capital access. It will also provide data to lenders, enabling them to have informed capital allocations across different borrowers.
Expanding Credit Offerings Within The DeFi Space
The partnership will make uncollateralized credit available to crypto traders that utilize Clearpool’s system. Additionally, the deal will be providing access to secondary markets via tokenized credit (CPOOL), allowing access to credit derivatives as well.
Chief Executive Officer of Clearpool, Robert Alcorn, stated that the company wants to expand credit offerings within the DeFi space. The partnership will boost the data-driven credit markets as well as develop an exciting new instrument in the industry.
The tokenization of the credit provided to the pool will allow the lenders to actively manage credit risk. Additionally, X-Margin’s data will be laying the foundation for an expansive secondary market.
Eliminating Risks Of Liquidation
The X-Margin Credit platform offers financial statement analysis and counterparty due diligence, as well as real-time risk monitoring across several borrower portfolios.
The lenders on the platform will have security for their investments via the credit-increased visibility of risk on X-Margin’s platform.
Chief Executive Officer of X-Margin, Darshan Vaidya, stated that the company is excited about the partnership. He added that the platform will be offering visibility and control to lenders, providing a more efficient and liquid market in the process.
The institutions borrowing on the Clearpool protocol have the benefit of eliminating risks of liquidation when they access the unsecured liquidity. As a result, the deal tends to boost capital efficiency. Also, Clearpool lenders can earn further rewards through their CPOOL tokens.
The platform is supported by several leading investors in the venture capital and blockchain industry. These include Folkvang trading, Wintermute, Hashkey, Kenetic, Huobi Ventures, Arrington Capital, Hex Trust, as well as Sequoia Capital India.