How Will Clearpool's Arbitrum Launch Transform DeFi Credit Markets?

Clearpool, the leading DeFi credit protocol known for pioneering RWA lending, has just launched on Arbitrum. For those who might not be familiar, Arbitrum is a leading Layer 2 technology that allows projects to explore and build within the largest Layer 1 ecosystem, Ethereum. This launch marks the introduction of Clearpool Prime on Arbitrum, which is an institutional-grade credit marketplace.

Already, Clearpool has originated US$18 million in USDC loans on Arbitrum, lending to Flow Traders, a major global trading firm listed on Euronext, and Bastion Trading, a prominent global digital assets trading firm and liquidity provider.

Clearpool has also received a grant in ARB tokens from the Arbitrum Foundation to help support its growth and technical development. Clearpool Prime is designed to bridge traditional private credit markets with decentralised lending ecosystems, catering to the increasing institutional demand for on-chain credit. It operates through non-custodial smart contracts in a compliant, KYC-verified environment. Since its inception, Clearpool Prime has originated over US$70 million in loans.

Arbitrum, on the other hand, is shaping the future of Ethereum with its Layer 2 scaling solutions, which allow projects to benefit from Ethereum's security while building next-gen apps. To give you an idea of its scale, Arbitrum has US$18.07 billion in Total Value Locked, 2.61 million active wallets, and over 1.1 billion total transactions, holding 39 percent of the L2 market share.

Jakob Kronbichler, CEO and Co-founder of Clearpool, highlighted the significance of this launch, saying that it bridges traditional finance with DeFi and underscores the growing demand and credibility of the Arbitrum ecosystem. He mentioned that the launch showcases Arbitrum’s robust Layer 2 solutions, which enhance security and scalability for Clearpool’s on-chain credit marketplace.

Nina Rong, Head of Ecosystem Development at The Arbitrum Foundation, added that RWA lending has become popular among both institutions and retail traders. She expressed pride in supporting Clearpool on the Arbitrum network and providing a grant to encourage the protocol's growth. This move enhances Arbitrum’s DeFi offerings to its expanding ecosystem of traders.

Since Clearpool’s mainnet launch in 2022, it has originated over US$570 million in loans. With Arbitrum’s support, Clearpool is positioned to attract more institutions seeking compliant on-chain credit solutions as the institutional adoption of crypto continues to grow.