Spark Drops $150M into Uniswap v4 Pools Amid Stablecoin Fragmentation

Spark, affiliated with Sky and built by Phoenix Labs, has migrated $150 million into Uniswap v4 pools. The goal is to make stablecoin swaps faster and cheaper as the market splinters into dozens of competing tokens.

The stablecoin landscape is fragmented, with major fintech and banking groups launching their own dollar-linked tokens. Spark is betting on this fragmentation by building a stablecoin FX layer on top of Uniswap, using its DualPool mechanism to keep liquidity working while it waits.

In the first month running, Spark's system handled about 30% of all stablecoin swaps on Uniswap, routing roughly $1.5 billion. The company has also partnered with PayPal to boost PYUSD liquidity and is signing similar infrastructure deals with other issuers.

Spark has dropped its consumer app, focusing instead on providing backend infrastructure for consumer platforms. Its institutional lending business has issued Bitcoin-backed over-the-counter loans through Anchorage, with an outstanding balance of approximately $260 million and a target of $1 billion by year-end.