TechFlow news, October 24 — According to The Block, DeFi lending protocol Spark announced it will allocate $100 million of its stablecoin reserves to Superstate's cryptocurrency arbitrage fund (USCC), marking what is described as the first large-scale attempt by an on-chain protocol to "diversify from government securities." This decision comes as U.S. Treasury yields drop to a six-month low.
Sam MacPherson, CEO of Phoenix Labs, said: "Superstate's USCC fund enables Spark to diversify its reserves while maintaining the security and compliance that Spark has always prioritized."
The Superstate fund generates returns through spot and futures market trading of Bitcoin, Ethereum, Solana, and XRP, currently offering an 8.35% 30-day yield—significantly higher than traditional Treasury returns. Spark previously generated yield primarily through tokenized Treasury products such as BlackRock's BUIDL and Franklin Templeton's FOBXX.
