Private credit marketplace Pareto has introduced a new synthetic dollar aimed at linking institutional investors with decentralized finance (DeFi) opportunities — a move that highlights the expanding role of stablecoins in global finance.
The newly launched USP synthetic dollar is fully backed by real-world private credit, Pareto told Cointelegraph on May 15. To mint USP, users must deposit stablecoins such as USDC (USDC) and USDt (USDT), which are then held as collateral.
“USP is backed 1:1 by the stablecoins used during the minting process,” Pareto co-founder Matteo Pandolfi told Cointelegraph in a written statement.
The deposited funds are placed into Pareto’s credit vaults and lent to what the company describes as “vetted institutional borrowers,” generating yields for participants.
To maintain its peg to the US dollar, Pareto uses what it calls a “native backing” process. Each USP token is minted only when an equivalent