Partnering with Cicada, Clearpool aims to institutionalize PayFi lending by creating risk-controlled credit pools.
In a significant move for the DeFi (Decentralised Finance) industry, Clearpool and Cicada Partners have announced a strategic partnership. This collaboration aims to institutionalise PayFi (Payment Financing) lending in the stablecoin economy, making it more accessible and trustworthy for traditional lenders.
Cicada Partners, an onchain credit risk advisory and management company founded by a team of former buy- and sell-side credit professionals, will provide institutional-grade underwriting, credit risk management, and administrative services for Clearpool's PayFi lending products. The company has underwritten over $850 million in loans at a low default rate of 1.2% during the prior cycle, demonstrating their expertise in the field.
Sefton Kincaid, the Managing Partner of Cicada Partners, will serve as the administrative and monitoring agent on behalf of lenders. Cicada will structure and underwrite PayFi lending opportunities for select borrowers, manage Credit Pools through Clearpool’s Port Vaults, and monitor risk on behalf of lenders.
Clearpool's new offerings include PayFi Credit Pools and cpUSD, a permissionless, yield-bearing asset. The yield derived from cpUSD is based on real payment flows, not crypto speculation, offering DeFi users improved risk-adjusted yield opportunities and increased capital efficiency.
This partnership bridges DeFi liquidity with the real-world working capital needs of fintechs by offering stablecoin-based short-term financing solutions that address payment settlement gaps between crypto and fiat. It also creates risk-managed Credit Pools that offer on-chain transparency, regular disclosures, calibrated risk limits, and covenants — all essential for institutional confidence.
Moreover, the collaboration enables scalable, non-custodial lending products that integrate stablecoin liquidity with professional underwriting and portfolio monitoring. This partnership thus lays the groundwork for a more secure, transparent, and scalable stablecoin economy, supporting fintech operators with stablecoin flows that match settlement realities and reduce liquidity costs.
In conclusion, the partnership between Clearpool and Cicada Partners strengthens Clearpool's institutional infrastructure for PayFi lending, accelerating adoption and institutional participation in PayFi lending. This partnership helps convert stablecoin flows into enterprise-grade credit markets on public blockchains, marking a significant step forward in the DeFi industry.
[1] Clearpool Press Release, "Clearpool and Cicada Partners Form Strategic Partnership to Accelerate Adoption of PayFi Lending," [date], [link]
[2] Cicada Partners Press Release, "Cicada Partners Expands Institutional Lending on Public Blockchains with Clearpool Partnership," [date], [link]
[3] CoinDesk, "Clearpool and Cicada Partners Team Up to Accelerate Adoption of PayFi Lending," [date], [link]
[4] Decrypt, "Clearpool and Cicada Partners Partner to Institutionalise PayFi Lending," [date], [link]
- FFNews.com reported on the strategic partnership between Clearpool and Cicada Partners, which aims to bring PayFi lending to the stablecoin economy, fostering more institutional trust and participation in DeFi.
- The collaboration between Clearpool and Cicada Partners is significant as it focuses on finance, business, and technology, particularly in the Decentralised Finance (DeFi) industry, by offering scalable, non-custodial lending products with professional underwriting and portfolio monitoring.
