After launching five permissionless mining pools, Clearpool established its first permissioned mining pool, allowing institutional lenders to earn yields of up to 15% by staking USDC. The project is in partnership with Jane Street Capital, a global proprietary trading firm aiming to enter the cryptocurrency industry.
Decentralized capital markets provider Clearpool on Tuesday launched a permissioned pool that enables borrowers with enhanced know-your-customer (KYC) requirements to access funds lent by institutional partners.
According to the press release, the pool — initially funded by $25 million in USDC — plans to grow to $50 million soon. Users can stake USDC to earn 15%-APR yields paid in CPOOL (the protocol’s utility and governance token),
Working with Jane Street, a quantitative trading firm with more than 1,700 employees, and BlockTower Capital, an investment firm focused on crypto and blockchain, Clearpool sees the launch as a “watershed moment for DeFi.” The agreement states that this is “the first time a major Wall Street institution has conducted a lending transaction through a DeFi protocol.”
Clearpool, which launched on the Ethereum network less than two months ago, is dedicated to facilitating institutional lending and borrowing of digital assets. Its previously released project, Permissionless Pools, offers “whitelisted institutional borrowers” the opportunity to become liquidity providers (LPs), competing with retail and institutional lenders for lucrative yields. The partners of the agreement are mostly intuitions from the traditional financial world.
The release added that Clearpool LP tokens, known as cpTokens, are the cornerstone of the tokenized credit and on-chain risk management system.
This release highlights the importance of KYC compliance as a key component for traditional financial institutions looking to enter DeFi. The agreement positions the launch of the tool with the two regulated institutions as a signal that it will lead the way in bridging traditional and decentralized finance.
Clearpool CEO Robert Alcorn promised more, saying: “This is just the beginning of what Clearpool will achieve as we continue to innovate and improve liquidity and liquidity across the digital asset space. risk management capabilities.”
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