Crypto: Spark’s New Lending Suite Tests Institutional Appetite For Onchain...
Spark is rolling out Spark Prime and Spark Institutional Lending, aiming to turn its DeFi stablecoin stack into institutional margin and credit lines.
Spark announced the launch of Spark Prime and Spark Institutional Lending on Wednesday to channel more of its decentralized finance (DeFi) stablecoin reserves into institutional credit markets.
Spark, a decentralized asset allocator whose core contributor, Phoenix Labs, previously worked on MakerDAO’s stablecoin and risk architecture, said the suite is designed to let borrowers access stablecoin loans without running their own DeFi operations.
Spark Prime offers margin‑style lending and off‑exchange settlement powered by Spark’s liquidity engine, while Spark Institutional Lending plugs Spark‑governed markets into qualified custodians such as Anchorage Digital so clients can keep collateral inside regulated custody.
According to Spark, early launch partners for Spark Prime include Edge Capital, M1 and Hardcore Labs.
Co‑founder and CEO of Phoenix Labs, Sam MacPherson, told Cointelegraph that institutional lending was already at about $150 million in commitments, with capacity “to scale to billions over the coming months,” while Spark Prime is starting with about $15 million and will ramp more slowly as “key safety features” are rolled out.
Related: Maker, now Sky’s, new stablecoin lashed over ‘freeze function’
According to data from DeFi Llama, Spark’s total value locked (TVL) is currently at $5.24 billion, down from a high of $9.2 billion in Nov. 2025, placing it among the larger DeFi money market platforms by assets.
By comparison, Aave currently leads DeFi lending with $27 billion in TVL, while Maple sits at $2.1 billion.
Spark says it supplied more than 80% of the USDC (USDC) liquidity for Coinbase’s Bitcoin‑backed loan market on Morpho, helping drive about $500 million in loan growth in the first three months. Public dashboards show Spark‑linked vaults have deployed more than $600 million to that market since launch.
Source: CoinTelegraph
