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 ( data-ct-non-breakable=”null” href=”https://cointelegraph.com/usdc-price-index” rel=”null” target=”null” text=”null” title=”null”>USDC) and USDt ( data-ct-non-breakable=”null” href=”https://cointelegraph.com/tether-price-index” rel=”null” target=”null” text=”null” title=”null”>USDT), which are then held as collateral.
“USP is backed 1:1 by the stablecoins used during the minting process,”…
