Clearpool & Jane Street have introduced a product that allows customers to bet USDC in exchange for returns in their unify token, CPOOL.
Clearpool & Jane Street KYC
It has been announced that Clearpool, a decentralized financial markets provider, has launched a permissioned liquidity pool based on its collateral free DeFi lending protocol in collaboration with Jane Street, one of the world’s leading quantitative trading firms, and BlockTower Capital, a leading cryptocurrency and blockchain investment firm. The pool has been originally funded with USDC to the tune of $25 million, with hopes to increase this amount to $50 million in the coming years, depending on market circumstances.
Clearpool, in collaboration with Jane Street, a quantitative trading organization which has more than 1,700 employees, and BlockTower Capital, a cryptocurrency and blockchain-focused investment company, believes the launch will be a “watershed moment for DeFi.” A prominent Wall Street firm has participated into a debt transaction using a DeFi protocol, according to the protocol, which was published on March 1.
Only two months after its inception on Ethereum, learpool wants to make institutional borrowing and lending of digital assets easier by facilitating institutional borrowing and lending of digital assets. In a previously launched product, Permissionless Pools, the company provides “whitelisted institutional borrowers” with the option to act as liquidity providers (LPs), competing with institutional and retail lenders for high rates on their investments. Those that participate in the protocol are mostly financial intuitions from the traditional financial sphere. Tokens from Clearpool LP (referred to as cpTokens in the launch) were included in the release. They are critical building pieces in the development of a system that tokenizes credits and handles on-chain risks effectively.
A key point made in the statement was the significance of KYC compliance as a prerequisite for traditional financial institutions looking to enter the DeFi market. The protocol portrays the introduction of the product with the two regulated entities as a signal that it would bridge the gap between conventional banking and decentralized finance, according to the protocol’s interpretation.
Quotes
Sanat Rao, General Partner at BlockTower Capital, said: “BlockTower Capital believes in the immense opportunity to bridge the decentralized finance community with institutional borrowers from the traditional finance world, Clearpool has built a high-quality institutional capital markets platform, and we are excited to partner with them and Jane Street to launch their first permissioned pool.”
Ian McGuinn of Jane Street crypto trading, said: “Firms like Clearpool are opening up new avenues for traditional firms to access financing in the crypto space. We look forward to working with both Clearpool and BlockTower to continue supporting the development of innovative services across the ecosystem.”
Robert Alcorn, CEO & co-founder of Clearpool, said: “Clearpool is building the architecture for the future financial markets. Major traditional financial institutions are beginning to pay more attention to DeFi, and the launch of this pool with Jane Street and BlockTower indicates that the migration has already begun. At Clearpool, we understand the needs of large financial institutions, and how decentralized blockchain solutions can provide an efficient environment for them to operate and create value in. This pool is a first for DeFi, and it is only the beginning of what Clearpool will achieve as we continue to innovate and grow liquidity and risk management capacity across the digital asset landscape.”
