DeFi Lender Spark Drops Consumer App to Power Wall Street and Big Tech Instead

Onchain lending platform Spark has shelved plans for a consumer-facing app and repositioned itself as behind-the-scenes infrastructure for major financial platforms, betting that connecting fragmented stablecoin networks is more valuable than competing for retail users directly.

Stablecoin Market Splits Into Competing Networks

Banks, fintechs and exchanges are increasingly issuing their own dollar-backed tokens, from Robinhood’s Global Dollar to Circle’s USDC and Tether’s USDT, scattering liquidity across dozens of separate networks. Spark aims to be the connective layer moving money between them, using a Uniswap v4 tool that concentrates yield-bearing liquidity and settles swaps within a single block.

Revenue Drops But Lending Business Expands

Annual revenue fell from roughly $80 million during the bull market to about $20 million now. Still, Bitcoin backed lending through Anchorage has grown to $260 million outstanding, with a target of $1 billion by year-end.

Spark now supplies yield to Robinhood’s Earn product rather than competing with it, routing deposits through a Morpho vault that has drawn over $200 million in less than a month.