DeFi & NFT

Story: Spark Puts $150 Million Into Uniswap v4 as Institutional Lending Hits $260 Million

By Maheen Hernandez

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How the DualPool Mechanism Works. Spark built what it calls a stablecoin FX layer on top of Uniswap.

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Spark Drops the Consumer App, Goes B2B. One of the bigger strategic calls Spark made was pausing its consumer app.

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Institutional Lending and the Push Toward $1 Billion. Spark's institutional lending business is the other big piece.

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Spark just moved $150 million into Uniswap v4 pools. The goal is straightforward: make stablecoin swaps faster and cheaper as the market splinters into dozens of competing tokens.

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The stablecoin landscape is pretty much a mess right now. PayPal has PYUSD. Circle runs USDC. Tether still dominates with USDT. Robinhood joined the Global Dollar consortium.

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Spark built what it calls a stablecoin FX layer on top of Uniswap. The core piece is a Uniswap v4 hook called DualPool.

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In its first month running, Spark's system handled about 30% of all stablecoin swaps on Uniswap, routing roughly $1.5 billion. That's a real number.

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PayPal worked directly with Spark to boost PYUSD liquidity. The collaboration was specifically aimed at helping PYUSD compete more credibly against USDT and USDC, which have…

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One of the bigger strategic calls Spark made was pausing its consumer app. Competing directly with Coinbase or PayPal for retail users is brutal, and Spark basically decided it…

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The clearest example of that model is Robinhood's Earn product. Robinhood routes deposits into a Morpho onchain vault that's curated by Steakhouse Financial.

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More context: Binance Drops $7 Billion in Stablecoins as Liquidity Fears Grip Crypto Markets

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It's a business-to-business-to-consumer play. Probably the right call given where things stand.

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Spark's institutional lending business is the other big piece. It has issued Bitcoin-backed over-the-counter loans through Anchorage, and the outstanding balance sits at about…

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Revenue has taken a hit. Annual revenue dropped from around $80 million during the bull market to about $20 million now. That's a steep fall.

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Spark Prime, the company's hybrid prime brokerage service, blends centralized and onchain financial products.

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