Clearpool and Cicada Partner to Institutionalize PayFi Lending with Enhanced Risk Management

Clearpool, a decentralized capital markets ecosystem, has joined forces with Cicada, an on-chain credit risk management firm, to bring institutional-grade risk management to PayFi lending. The collaboration aims to structure and underwrite lending opportunities while serving as an administrative agent for select Credit Pools.

Cicada brings a proven track record, having underwritten over $850 million in loans with a default rate of just 1.2% during the previous market cycle. The partnership is expected to bolster Clearpool's credibility and attract more institutional players to decentralized finance.

Jakob Kronbichler, CEO of Clearpool, emphasized the importance of bridging liquidity gaps in fintech. "While stablecoin settlements are instant, underlying fiat flows are not," he noted. The integration of Cicada's risk management framework is poised to strengthen Clearpool's infrastructure for payment financing solutions.