Hex Trust has announced a partnership with Clearpool Finance (Clearpool), a decentralized capital markets ecosystem focused on institutional lending and credit markets. As part of the partnership, Hex Trust will incubate Clearpool, provide custody services to their participants as well as compliance services, such as KYC, identity verification and transaction monitoring services.
Digital asset institutions such as crypto hedge funds, market makers and trading desks, do not have the same access to capital as their traditional counterparts. Traditional lending institutions do not typically lend to crypto institutions, leading them to seek alternative methods of funding in DeFi and CeFi markets. These alternatives, whilst being novel in design, also present novel problems, mainly in the form of over-collateralization and risk of liquidation from a borrower’s perspective, whilst default risks remain from a lender’s perspective.
Clearpool is a decentralized capital markets ecosystem and enables institutions to access unsecured loans, eliminates liquidation risk, and creates attractive return opportunities for liquidity providers. The protocol also introduces a credit reputation framework and creates a sophisticated tokenized credit & risk management solution allowing LPs to monitor, manage and hedge risks.
Clearpool has recently secured funding from a range of leading global investors. The funding round details will be announced shortly.
“At Hex Trust we believe that DeFi platforms will eventually mature and play an important role in the institutional market. By combining Hex Trust’s fully compliant and regulated approach with an innovative protocol such as Clearpool, we’re putting together a building block for a future decentralized capital markets ecosystem.” — Alessio Quaglini, CEO & Cofounder of Hex Trust
“Clearpool is very excited to be partnering with Hex Trust. We have identified clear synergies that will benefit both companies as we enter this exciting phase of our story. Clearpool’s value proposition extends well beyond DeFi and crypto markets and has the potential to attract significant flows and market share from TradFi. Partnering with Hex Trust will help Clearpool to achieve this vision, and we look forward to a long and successful partnership.” — Robert Alcorn, CEO & Cofounder of Clearpool
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 concept 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.