TechFlow, May 15 — According to Cointelegraph, Pareto's private credit market platform launched a new synthetic dollar called USP on May 15, aiming to connect institutional investors with decentralized finance (DeFi) opportunities. This synthetic dollar is fully backed by real-world private credit assets, and users can mint it 1:1 by depositing stablecoins such as USDC or USDT.
As explained by Matteo Pandolfi, co-founder of Pareto, deposited funds are placed into Pareto’s credit vault and lent to vetted institutional borrowers, generating yield for participants. To maintain its peg to the dollar, Pareto employs a "native backing" process and arbitrage mechanisms, along with a protocol-funded stability reserve that acts as a buffer in case of borrower defaults.
