Clearpool will debut Credit Vaults on Avalanche, aimed at enhancing the lending process by utilizing real-world assets (RWAs), such as private credit and credit defaults. These assets will enable uncollateralized borrowing options for institutions.

Additionally, Clearpool will host its initial RWA pool on Avalanche, aligning with their goal of releasing tokenized assets and increasing their value within the Avalanche ecosystem.

The first Credit Vault was introduced by Banxa, a publicly registered international framework provider, to address the needs of borrowers and lenders within a contained blockchain space.

Credit Vaults represent the latest development in the growth of RWAs on Avalanche. In 2023, Avalanche Evergreen Subnets provided financial solutions businesses with a controlled environment to test tokenization and on-chain finance capabilities. Onyx by JPMorgan utilized an Evergreen Subnet to explore how tokenization could automate portfolio management.

More recently, Citi and DTCC Digital Assets used the Avalanche Spruce network to explore the benefits of private market tokenization via asset managers like Wellington Management and WisdomTree.

Clearpool can tokenize loans targeting Banxa and move them on-chain, with lenders receiving cpTokens representing their share in the pool and compound interest. Banxa's Credit Vaults offer a week's repayment timeline and additional rewards in the form of AVAX tokens.

According to Clearpool's CEO and Co-Founder, Jakob Kronbichler, the introduction of Credit Vaults on Avalanche marks a significant milestone for them and the RWA DeFi sector, accelerating institutional acceptance.

Morgan Krupetsky, Director of BD and Capital Markets at Ava Labs, asserts that Avalanche is the ideal platform to support the introduction of Clearpool's Credit Vaults.

Clearpool's permissionless pools have brought private credit yield to DeFi, benefiting trading businesses and market makers as borrowers. Credit Vaults cater to upcoming on-chain borrowers like fintech and payment businesses, offering slab rates and more stable liquidity. Borrowers can customize their terms related to interest rates and repayment schedules through Credit Vaults.

Clearpool is a leading decentralized finance credit marketplace, providing institutions with unsecured liquidity directly from DeFi markets. Clearpool Prime, another permissioned platform, addresses compliance obligations for institutional market players borrowing and lending digital assets.

Avalanche is a smart contracts platform that continuously upgrades and rapidly finalizes transactions. Its protocol, Subnet framework, and HyperSDK enable Web3 builders to deploy customized blockchain services.