KEY TAKEAWAYS
- Clearpool partners with Cicada Partners to enhance PayFi lending through strategic credit risk management.
- Cicada Partners brings extensive experience in crypto lending, having underwritten over $850 million in loans.
- Clearpool’s new offerings, including PayFi Credit Pools and cpUSD, aim to capture returns from real-world capital demands.
- This collaboration strengthens Clearpool’s institutional infrastructure, promoting a secure and scalable stablecoin economy.
Clearpool has announced a strategic partnership with Cicada Partners, an on-chain credit risk advisory and management company. This collaboration aims to enhance PayFi lending opportunities by leveraging Cicada’s expertise in structuring and underwriting credit for select borrowers. Cicada will manage Credit Pools through Clearpool’s Port Vaults and act as the administrative and monitoring agent on behalf of lenders.
Cicada Partners, founded by a team of experienced credit professionals, has a strong background in crypto lending. The company has underwritten over $850 million in loans with a default rate of 1.2% during the previous cycle. Following the collapse of FTX, Cicada was established to support the growth of institutional lending on public blockchains, offering Risk-as-a-Service (RaaS) solutions. These include third-party underwriting, pool management for DeFi protocols, and advisory services tailored for institutional clients in the blockchain and real-world asset (RWA) sectors.
Advancing PayFi Lending with Innovative Solutions
Clearpool is expanding into Payment Financing (PayFi), a rapidly growing credit vertical that supports global stablecoin payments for leading fintechs. This includes various services such as retail remittances, B2B cross-border payments, and card processing. The protocol has already facilitated over $830 million in stablecoin credit, serving institutional borrowers like Jane Street, Wintermute, and Flow Traders.
New offerings from Clearpool include PayFi Credit Pools and cpUSD, a permissionless, yield-bearing asset designed to capture returns from real-world capital demands. Unlike traditional crypto assets, cpUSD’s yield is derived from real payment flows, making it structurally uncorrelated with crypto market cycles.
Strengthening Institutional Infrastructure
Jakob Kronbichler, CEO & Co-founder of Clearpool, highlighted the importance of integrating Cicada’s risk management and structuring expertise. This partnership is set to enhance Clearpool’s institutional infrastructure for PayFi lending, supporting the growth of the stablecoin payment ecosystem. By providing professional underwriting and active credit management, the collaboration aims to offer DeFi users improved risk-adjusted yield opportunities and increased capital efficiency.
The partnership between Clearpool and Cicada marks a significant step toward unlocking access to PayFi lending opportunities. Together, they are accelerating the adoption of PayFi, laying the groundwork for a more secure, transparent, and scalable stablecoin economy.
For more information, the official announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Clearpool’s partnership with Cicada aims to enhance PayFi lending by integrating risk-managed credit pools, leveraging Cicada’s expertise in credit structuring and underwriting.
Recent industry reports indicate the rise of PayFi as a transformative payment and lending layer, enabling real-time transactions and automated lending. This collaboration between Clearpool and Cicada aligns with these trends by enhancing PayFi lending infrastructure and expanding the stablecoin payment ecosystem.
As per insights from a blockchain industry analysis, PayFi is considered a leading blockchain use case with significant growth potential in DeFi. This reinforces the impact of Clearpool’s and Cicada’s partnership in advancing the stablecoin market and supporting the growth of PayFi lending opportunities.
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