Pareto launches synthetic dollar backed by private credit

“Ultimately, the goal is not to replicate TradFi’s weaknesses, but to reimagine private credit with the transparency and efficiency of DeFi,” a Pareto spokesperson said.

Private credit marketplace Pareto has introduced a new synthetic dollar aimed at linking institutional investors with decentralized finance (DeFi) opportunities — a move that highlights the expanding role of stablecoins in global finance.

The newly launched USP synthetic dollar is fully backed by real-world private credit, Pareto told Cointelegraph on May 15. To mint USP, users must deposit stablecoins such as USDC (USDC) and USDS, which are then held as collateral.

The deposited funds are placed into Pareto’s credit vaults and lent to what the company describes as “vetted institutional borrowers,” generating yields for participants, Pareto co-founder Matteo Pandolfi told Cointelegraph in a written statement.

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