Uniswap (UNI) and Spark are betting that as the number of stablecoins grows, the market will need the equivalent of a currency network to move liquidity between issuers.
Spark, a decentralized finance (DeFi) protocol focused on stablecoin liquidity, said Thursday that it is working with decentralized exchange Uniswap to create what it calls an “FX layer” for stablecoins, a shared liquidity network designed to support a growing number of issuers.
The goal is to facilitate movement between stablecoins while allowing idle capital to earn returns until it is needed for trading, the companies said.
The move comes as stablecoins move beyond their crypto-native roots and increasingly become part of the cross-border payments network. Contributing to this has been the advancement of regulatory frameworks by lawmakers in the United States and elsewhere that encourage fintechs, payments companies and banks to enter the market. The stablecoin market could grow from the current $300 billion to $4 trillion by 2030, global bank Citi has projected.
