Spark invests $100M in Superstate's USCC fund as Treasury yields hit six-month lows
DeFi investors turn to market-neutral digital asset strategies for higher returns amid falling Treasury yields and growing compliance demands.
Key Takeaways
- Spark invested $100 million in Superstate's USCC fund to diversify yield sources as Treasury returns decline.
- The USCC fund employs market-neutral strategies across major crypto assets, delivering an 8.35% 30-day yield.
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Decentralized finance protocol Spark said Thursday it has allocated $100 million of its stablecoin reserves to Superstate’s USCC fund, a regulated fund designed for qualified purchasers to gain yield from crypto basis trading strategies.
The investment comes as the 10-year U.S. Treasury yield fell below 4% to 3.976% this week. DeFi protocols like Spark and stablecoin issuers are turning to alternative, uncorrelated yield opportunities to maintain competitive returns.
Robert Leshner, CEO of Superstate, said in a statement that the move would help secure stable, attractive returns for investors when traditional investments are less rewarding.
“The investment allows Spark to maintain exposure to yield opportunities uncorrelated with Federal Reserve rate policy while operating within a compliant institutional framework,” Leshner stated. As protocols adapt to the new rate environment, we’re helping them do it within a regulated, institutional framework.”
Launched in July 2024, the USCC fund employs basis trading strategies to capture price differentials between spot and futures markets across major digital assets. It maintains market-neutral exposure to Bitcoin, Ethereum, Solana, and XRP alongside US Treasury holdings, currently delivering a 30-day yield of 8.35%.
“Superstate’s USCC fund allows Spark to diversify its reserves while maintaining the same level of safety and compliance Spark always prioritizes,” said Sam MacPherson, CEO and Co-Founder of Phoenix Labs, the main developer behind Spark. “As onchain ecosystems evolve, combining regulated yield with transparent, verifiable infrastructure is essential to delivering stability and long-term value for Spark’s users.”
