Clearpool is set to introduce Credit Vaults on Avalanche, a move aimed at enhancing the lending process by incorporating real-world assets (RWAs) such as private credit and credit defaults. These assets will enable institutions to access uncollateralized borrowing options.

Additionally, Clearpool plans to host its initial RWA pool on Avalanche, aligning with its goal of tokenizing assets and increasing their value within the Avalanche ecosystem.

The introduction of Credit Vaults on Avalanche follows the trend of growing RWAs on the platform. In 2023, the introduction of Avalanche Evergreen Subnets provided a controlled environment for testing tokenization and on-chain finance capabilities. Various entities like Onyx by JPMorgan, Citi, and DTCC Digital Assets have utilized Avalanche Subnets for exploring private market tokenization benefits.

Clearpool will tokenize loans aimed at Banxa and transfer them on-chain, with lenders receiving cpTokens representing their share in the pool and compound interest. Banxa's Credit Vaults offer a repayment timeline of one week 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 and will revolutionize the RWA DeFi sector, accelerating institutional adoption. Morgan Krupetsky, Director of BD and Capital Markets at Ava Labs, views Avalanche as the ideal platform for launching Clearpool's Credit Vaults.

Clearpool's permissionless protocol enables institutions to access unsecured liquidity directly from DeFi markets. Meanwhile, Clearpool Prime addresses compliance requirements for institutional market players involved in borrowing and lending digital assets.

Avalanche, known for its fast transaction finalization and smart contracts platform, provides an ideal environment for releasing customized blockchain services through its protocol, Subnet framework, and HyperSDK.