Spark has launched Spark Prime and Spark Institutional Lending to channel its decentralised finance stablecoin reserves into institutional margin and credit markets.
The new suite is designed to allow institutional borrowers to access stablecoin loans without operating their own DeFi infrastructure, positioning Spark as a bridge between onchain liquidity and regulated credit demand.
Spark Prime will provide margin-style lending and off-exchange settlement through Spark’s liquidity engine, while Spark Institutional Lending connects Spark-governed markets to qualified custodians including Anchorage Digital to keep collateral within regulated custody frameworks.
Sam MacPherson, co-founder and chief executive of Phoenix Labs, said institutional lending commitments already stand at about $150 million with capacity “to scale to billions over the coming months,” while Spark Prime is launching with around $15 million and will expand gradually as “key safety features” are introduced.
According to DeFi Llama, Spark’s total value locked stands at $5.24 billion, down from a November 2025 peak of $9.2 billion, as the broader DeFi market declined about 20% during the recent crypto selloff, and following the announcement the Spark token price was unchanged at $XX.
Spark said it has supplied more than 80% of the USDC liquidity for Coinbase’s Bitcoin-backed loan market on Morpho, contributing to roughly $500 million in loan growth in the first three months and deploying more than $600 million through Spark-linked vaults.
The platform has also supported PayPal’s PYUSD stablecoin programme with around $500 million in Spark-governed liquidity, underscoring growing institutional appetite to use onchain stablecoins within regulated credit and settlement structures.
At the time of reporting, Spark price was $0.02242.