Clearpool & Cicada Team Up: Revolutionizing Risk Management in PayFi Lending
DeFi just got a security upgrade—and Wall Street’s sweating.
Risk meets its match: Clearpool, the institutional lending protocol, partners with Cicada’s on-chain monitoring to bulletproof PayFi loans. No more guesswork—real-time credit scoring meets decentralized liquidity.
Why it matters: Institutional crypto lending’s dirty secret? Half-baked risk models. This collab forces transparency—every loan, every counterparty, tracked like a hawk. TradFi’s ‘trust us’ model just got outsourced to code.
The kicker: Banks still charge 20% for ‘secure’ loans while DeFi innovates. Irony’s a bitch.
Clearpool has partnered with Cicada to institutionalize PayFi lending with risk-managed Credit PoolsCicada is an on-chain credit risk management company founded by a seasoned team of former buy- and sell-side credit professionals. Cicada’s co-founders have DEEP crypto… pic.twitter.com/JY79tNCVqE — Clearpool (@ClearpoolFin) August 11, 2025
Clearpool’s partnership with Cicada could shake up the lending space, bringing more institutional players into the DeFi fold.
Clearpool Expands to Payment Financing or PayFi
According to Jakob Kronbichler, CEO of Clearpool, Cicada’s risk management integration WOULD strengthen Clearpool’s institutional infrastructure for PayFi lending.
“While stablecoin settlements are instant, underlying fiat flows are not, forcing fintechs to bridge liquidity gaps,” he said. “This partnership enhances our proven credit framework and supports the growth of the emerging trillion-dollar stablecoin payment ecosystem.”
Clearpool will be launching PayFi Credit Pools for users to access these highly liquid, real-world yield opportunities. This means facilitating credit to institutional lenders specializing in short-term stablecoin-based working capital to fintech operators.
It will also launch cpUSD, a permissionless, yield-bearing asset, which will enable retail to tap into real-world stablecoin payments.
Cicada offers Risk-as-a-Service (RaaS) Solutions to DeFi Protocols
On the other hand, Cicada offers Risk-as-a-Service (RaaS) solutions, including third-party underwriting, pool management for DeFi protocols and risk structuring.
“Partnering with Clearpool allows us to elevate PayFi lending by combining our underwriting and risk management expertise with their innovative credit products,” said Sefton Kincaid, Managing Partner of Cicada Partners.
The partnership will accelerate the adoption of PayFi by laying the groundwork for more safer, transparent and scalable stablecoin ecosystem.
“Together, we’re advancing professionally managed Credit Pools and strengthening Clearpool’s offering to borrowers and lenders in the growing stablecoin economy,” Kincaid added.
