The decentralized capital markets solution, Clearpool, has reportedly received funding of around $3 million from several crypto investors. With the funding, the Clearpool ecosystem aims to enable institutional borrowing of uncollateralized assets, thereby expanding upon its decentralized finance (DeFi) goals. The incubation of the project is being undertaken by Hex Trust, which is a custodian of digital assets. According to a press release given by the company on 28 September, Hex Trust will be responsible for compliance and custody services that would include Clearpool borrowers’ transaction monitoring and know-your-customer (KYC) checks.
The press release stated that the funds received will be directed to further the protocol of the project. The company also aims to use it to launch additional features on the ecosystem like decentralized credit derivatives. Many prominent crypto players like GBV Capital, Arrington Capital, Sequoia Capital India, HashKey Capital, and Sino Global Capital participated in the event. Besides them, the funding round saw the participation of BCW Group, Wintermute Ascendex, FBG Capital, Huobi ventures, Folkvang and Kinetic Capital.
Clearpool is a capital markets ecosystem where institutions can borrow uncollateralized assets. Meanwhile, the lenders can derive risk management solutions and also receive rewards. The major flaw found in the DeFi space is the lack of access to credit scores and risk profiles of borrowers. Clearpool aims to bring transparency to this process by allowing lenders to access important information through their own credit scoring mechanism. In a recent interview, the CEO of Clearpool, Robert Alcorn, said that the platform has successfully introduced many new concepts to the DeFi space, like tokenized credit system and single borrower liquidity pool.