Uniswap (UNI) and Spark are betting that as the number of stablecoins grows, the market will need the equivalent of a foreign exchange network to move liquidity between issuers.
Spark, a decentralized finance (DeFi) protocol focused on stablecoin liquidity, said Thursday 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 make it easier to move between stablecoins while allowing idle capital to earn returns until 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. That has been helped by lawmakers in the US and elsewhere promoting regulatory frameworks that encourage fintechs, payments firms and banks to enter the market. The stablecoin market could grow from the current $300 billion to $4 trillion by 2030, global bank Citi predicted.
