May 15, 2025 -  Pareto, the private credit marketplace bridging institutional capital with on-chain lending, has officially launched USP, the first synthetic dollar backed by real-world private credit. 

The launch comes at a time when DeFi private credit is accelerating, with TVL (capital deposited in credit protocols) growing over 47% in the last year. It now stands at approximately $23B, compared to over $2T capital in traditional private credit, underscoring the vast growth opportunity.

USP is designed to connect traditional private credit markets with DeFi, acting as a core asset for blockchain-based lending. Unlike volatile cryptocurrencies, USP is a stable, dollar-like digital asset secured by a diverse portfolio of real-world loans made to businesses and institutions meaning its value is supported by actual loan repayments, not speculative assets.

To further maximize capital efficiency, liquidity providers can stake USP into sUSP to earn native yield from real-world credit strategies. As sUSP relies on a basket of institutional loans, it delivers predictable, and transparent returns - positioning it as a scalable alternative to traditional yield products.

USP is accessible in both permissionless (open market) and permissioned (KYC’ed minting) ways, offering flexibility for a wide range of users.

"USP represents a next-generation synthetic dollar engineered to meet the rigorous standards of institutional capital. Fully transparent, yield-generating, and underpinned by verifiable real-world economic activity. By bridging traditional credit frameworks with DeFi infrastructure, USP lays the foundation for scalable, institutional-grade onchain credit markets."

- Matteo Pandolfi, Pareto Co-founder

Institutional players such as FalconX, Fasanara Digital, M11 Credit, Bastion Trading, and RockawayX have already trusted Pareto’s infrastructure to originate and manage on-chain credit lines, demonstrating strong validation from leading asset managers and digital asset funds.

As demand for scalable, efficient credit solutions accelerates across decentralized and traditional finance, USP lays the foundation for a more inclusive financial system, where institutional-grade credit becomes broadly accessible.

To celebrate this milestone, Pareto has prepared additional incentives for early joiners. Visit the Pareto App for details.

About Pareto
Pareto is a private credit marketplace that connects institutional lenders and borrowers, providing scalable, yield-generating opportunities and bridging institutional capital on-chain.

Tailored for asset managers, digital asset funds, and other professional investors, Pareto offers seamless access to regulatory-compliant alternative credit products. Its infrastructure emphasizes transparency, automation, and flexibility. Credit Vaults are the core primitive: they eliminate utilization-based inefficiencies, reduce operational overhead, and improve capital efficiency for both lenders and borrowers.

As the financial landscape evolves, Pareto aims to set a new standard for institutional credit with fully automated, data-driven lending solutions.
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