Clearpool, a decentralized credit protocol previously built on Ethereum, is transitioning its entire core infrastructure to the XRP Ledger (XRPL). The platform has outlined plans to migrate its native token from CPOOL to a new asset called CLEAR, aiming to overcome prior growth limitations associated with the Ethereum network.
Clearpool reshapes its strategy with XRPL migration
By relocating to XRPL, Clearpool is positioning itself as a principal on-chain lending partner for Ripple, the company behind the XRP Ledger. This strategic shift seeks to harness untapped institutional capital within the XRPL ecosystem and foster new lending markets that had faced constraints on Ethereum.
Historically, the XRP Ledger focused on cross-border payments rather than decentralized finance (DeFi) products. Its lack of advanced lending tools left substantial XRP liquidity unused, while Ethereum led the decentralized lending sector.
Recent developments have altered the landscape. The XRPL v3 upgrade has introduced native lending functions to the network. Clearpool enters this market at an early stage, aiming to adapt Morpho’s successful Ethereum lending model to real-world business and private credit applications on XRPL. Morpho is known for facilitating over $14 billion in deposits within the Ethereum DeFi ecosystem.
Mini dictionary: XRPL v3, the latest version of the XRP Ledger protocol, has added native lending features, allowing developers to build DeFi credit products directly on the XRP network.
New institutional credit fund and CLEAR token launch
Clearpool’s migration is coupled with the launch of a significant commercial offering. In partnership with Cicada Partners, Clearpool is establishing an institutional credit fund designed to finance fintech and payment companies.
All settlements and payouts in the fund will utilize RLUSD, Ripple’s newly launched regulated U.S. dollar stablecoin. Ripple has also joined as a limited partner, providing liquidity for the initial lending pools.
Currently, the system is undergoing testing on the Devnet, while XRPL mainnet validators hold the final vote on enabling new lending functionality. Hex Trust, a regulated digital asset custodian, is tasked with overseeing security, borrower verification, compliance, and interoperability with Ethereum’s ERC-20 infrastructure.
Mini dictionary: Hex Trust is a licensed digital asset custodian serving institutional clients by providing secure custody and compliance services for cryptocurrencies.
CPOOL to CLEAR: Token migration and new economics
Clearpool’s original governance token, CPOOL, debuted in 2021 but now faces distribution exhaustion, with 99% of supply already released and minimal resources left for incentivizing liquidity.
The upcoming CLEAR token represents a transparent new phase. The treasury reset will enable aggressive market expansion within XRPL. The project intends to implement a strictly deflationary model for CLEAR: half of all protocol fees from lending products will be used to buy back and permanently burn the token, while the other half will reward active stakers.
| Token | Main Chain | Supply Status | Incentive Structure |
|---|---|---|---|
| CPOOL | Ethereum | 99% Distributed | Limited for new markets |
| CLEAR | XRPL | Full reset | Deflationary, revenue buybacks and staking rewards |
Community members can currently review the migration proposal during a 14-day discussion period on the Clearpool forum. Following the discussion, tokenholders will determine the final launch of the migration and the activation of new XRPL pools through a general Snapshot vote.
Clearpool’s revised approach seeks to introduce fully transparent and auditable lending products, with protocol fees split between buybacks for burning and rewards for active stakers, marking a new era for DeFi on XRPL.
