Pareto has launched a synthetic dollar USP backed by private credit to connect institutional investors with Decentralized Finance opportunities.

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According to ChainCatcher news and a report from Cointelegraph, the Pareto private credit market platform has launched a new synthetic dollar, USP, designed to connect institutional investors with Decentralized Finance (DeFi) opportunities. This synthetic dollar is fully backed by real-world private credit assets, and users can mint it by depositing stablecoins such as USDC or USDT at a ratio of 1:1. Matteo Pandolfi, co-founder of Pareto, introduced that the deposited funds will be placed in Pareto’s credit vault and lent to vetted institutional borrowers, generating returns for participants. To maintain the peg with the US dollar, Pareto employs a “native support” process and arbitrage mechanisms, and has established a protocol-backed stability reserve as a buffer in case of borrower defaults.

DEFI-3.52%
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