P2P lending platform CLST emerges to capitalize on Celsius and Terra/LUNA collapse

Rick Steves

“With the current market environment exposing points of failure, it is clear that the crypto industry needs a better way to manage liquidity and counterparty risk as it continues to mature.”

CLST has raised an undisclosed number of millions of US dollars in a seed round led by Spartan Group, with participation from Coinbase Ventures, Kraken Ventures, GSR, Menai Financial Group, Luno Expeditions (a subsidiary of Digital Currency Group), and TX Ventures – the VC investment arm of TX Group.

The institutional-only lending and borrowing venue for stablecoins and crypto assets has easily raised funds only a few weeks after the collapse of crypto lender Celsius, which left many small and large creditors holding the bag.

Industry must better manage liquidity and counterparty risk

Michael Guzik, founder and CEO of CLST, said: “CLST sits at the nexus of the crypto asset short-term debt market and traditional financial market. In tandem with our world class investors and partners, we are establishing a market for stablecoins, digital assets, fiat, and beyond – the ‘new money. With the new funding, CLST will bolster its peer-to-peer infrastructure through increased operational and market expansion, ultimately creating an ease of lending that has not yet been made possible between institutional entities, until now.”

Leeor Groen, Director at Spartan Group, commented: “With the current market environment exposing points of failure, it is clear that the crypto industry needs a better way to manage liquidity and counterparty risk as it continues to mature. We are glad to back the CLST team as they launch the leading platform to facilitate both institutional borrowing and lending as well as treasury management solutions for digital asset market participants.”

Peer-to-peer lending and borrowing

CLST will act as a one-stop-shop for peer-to-peer lending and borrowing, catering to digital asset lenders and borrowers such as hedge funds, trading firms, treasuries, asset managers, and crypto banks seeking automated digital asset collateral management features.

The new platform automates bilateral price negotiation and settlement for the unsecured and collateralized short-term debt market.

The firm had a soft launch earlier this year and will be going live with a wide market version of the application later this year.

Capitalizing on immaturity of crypto debt market

The firm says it is capitalizing on the recent immaturity of the crypto debt market which led to the financial distresses of market leaders. The absence of counterparty risk assessment has also plagued the lending industry, prohibiting sophisticated parties from participating.

At the moment, lenders have limited visibility over a borrower’s trading risk, while borrowers have no oversight over the collateral deposited to obtain loans. CLST aims to tackle the barrier by providing “one click” financial data sharing and collateral management processes.

The CLST platform features electronic quotation, negotiation, wallet to wallet transaction, collateral management, and transaction reporting enable any trade participant to engage in short-term debt markets.

The inherent lack of infrastructure to connect lenders and borrowers hinders institutional adoption and depth of liquidity, and CLST aims to change that with more automation, collateral management and counterparty risk assessment.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

<