Pareto launches a synthetic USD USP backed by private credit to connect institutional investors with DeFi opportunities

ChainCatcher News: According to Cointelegraph, the Pareto private credit marketplace platform has launched a new synthetic dollar USP designed to connect institutional investors with decentralised finance (DeFi) opportunities. This synthetic dollar is fully backed by real-world private credit assets, and users mint it by depositing stablecoins such as USDC or USDT in a 1:1 ratio.

According to Matteo Pandolfi, co-founder of Pareto, the deposited funds will be put into Pareto's credit vault and lent to vetted institutional borrowers, generating income for participants. To maintain its peg to the U.S. dollar, Pareto employs a "native support" process and arbitrage mechanism, and has established a protocol-funded stability reserve that acts as a buffer in the event of a borrower's default.

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