DeFi protocol Clearpool has launched an "institutional-grade" marketplace dubbed as "Clearpool Prime" on the Polygon network.
According to a press release on Monday, Clearpool Prime enables investors to connect to the "largest global KYC & AML compliant network" for wholesale borrowing and lending of digital assets.
“KYB & AML compliant access to deep liquidity, efficient pricing and minimized contract risk – that’s what attracts established institutions to Prime,” said Clearpool CEO Robert Alcorn.
“We have observed that for certain institutions it can be quite overwhelming to perform risk assessments within the current fragmented system. Here comes Prime," he added.
Clearpool is the first decentralised marketplace for unsecured digital asset liquidity, where institutional borrowers can create single-borrower liquidity pools and compete for uncollateralised liquidity directly from a decentralised network of lenders.
The protocol, which has a global team of contributors, is backed by investors from both traditional and blockchain venture capital, including Sequoia Capital India, Arrington Capital, Sino Global Capital, Hex Trust, Huobi Ventures, GBV Capital, HashKey, and Wintermute.
According to Clearpool, borrowers on Clearpool Prime can launch pools with customized terms while lenders are able to gain access to yield opportunities with institutional counterparties
“Expect to see a wide range of borrower profiles: from traditional trading firms to various types of crypto-native players. Prime is also attractive to fintechs that provide lending solutions in the TradFi world, such as loans in emerging markets,” said Jakob Kronbichler, co founder of Clearpool.
Institutional market participants seeking access to wholesale DeFi lending and borrowing are now invited to apply to join Clearpool Prime.
Institutional-grade DeFi kicking off
Institutions have been seeking to gain exposure to DeFi in recent times.
In November, DBS bank announced that it became one of the first banks globally to test the trading of FX and government securities using permissioned DeFi liquidity pools on a public blockchain through Project Guardian, a collaborative initiative with the financial industry that seeks to explore the economic potential and value-adding use cases of asset tokenisation.