Quick Breakdown:
- Pascal Protocol partnered with Treehouse to pilot smart clearing for decentralized fixed income products.
- The Proof of Concept will test TESR-based Forward Rate Agreements using Treehouse’s DOR benchmark framework.
- The initiative comes ahead of Pascal’s September Token Generation Event (TGE) for its $PASC token.
Pascal Protocol has entered into a strategic collaboration with Treehouse to pilot smart clearing for decentralized fixed income products, marking a major step toward institutional-grade adoption of DeFi yield markets.
The partnership will test clearing of TESR-based Forward Rate Agreements (FRAs), benchmarked against the Treehouse Ethereum Staking Rate (TESR) Curve, a decentralized rate built on Treehouse’s Decentralized Offered Rates (DOR) framework. By integrating Pascal’s programmable clearing and settlement layer, the Proof of Concept (PoC) aims to bring capital markets–level efficiency and risk management into DeFi.
Decentralized Clearing for Institutional Adoption
The pilot will combine Treehouse’s benchmark rate infrastructure with Pascal’s atomic clearing engine to deliver features long associated with traditional finance, including risk netting, real-time margining, and reduced counterparty exposure.
“DeFi’s next chapter goes beyond execution. We are establishing the first decentralized clearing infrastructure that capital markets can rely on,”
said James Davies, CEO and Co-Founder of Pascal Protocol.
Brandon Goh, CEO of Treehouse, added that integrating Pascal’s system with Treehouse’s FRA benchmarks
“is the missing piece to unlock composability and real-world adoption”
of decentralized fixed income.
The PoC will run with select institutional partners in the coming quarters, testing appetite for scalable, composable fixed income instruments in the digital asset ecosystem.
Momentum Ahead of Token Generation Event
The initiative comes as Pascal prepares for its Token Generation Event (TGE) in early September, which will launch the $PASC token with staking and governance features. The move signals Pascal’s expansion from trading infrastructure to a full-scale clearing protocol for Web3 capital markets.
By merging clearing mechanics with decentralized finance, Pascal and Treehouse aim to bridge TradFi practices with DeFi innovation, positioning decentralized fixed income as a scalable, safer option for institutional investors.
In a parallel move highlighting DeFi’s institutional shift, KuCoin has partnered with digital finance platform AlloyX to pilot the use of Real World Asset (RWA) tokens as collateral on its exchange. The trial will integrate the RYT token, backed by the ChinaAMC USD Digital Money Market Fund, into KuCoin’s off-chain settlement framework marking a step toward embedding tokenized traditional assets into the broader DeFi ecosystem.
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