Spark Allocates $100 Million to Superstate’s Regulated Crypto Fund to Diversify Beyond Treasury Bonds Amid Falling Yields

by
Alyssa Davidson

Posted: Oct 24, 2025 3:11 AM Updated: Oct 24, 2025 3:11 AM

by well

Correction and fact check date: October 24, 2025, 3:11 AM

We sometimes use automatic translation plugins to improve your local language experience. The automatic translation may not be accurate, so please read the original text for accurate information.

Decentralized finance (DeFi) lending platform and on-chain asset management protocol Spark has allocated $100 million from its stablecoin reserves to Superstate’s USCC fund, a regulated cryptocurrency-based trading vehicle designed to profit from the difference between spot and futures market prices. The move represents one of the earliest significant efforts by a major DeFi protocol to diversify its holdings beyond government securities amid Treasury yields falling to their lowest level in six months.

“As Treasury yields compress, access to stable and diverse yields becomes increasingly important,” Robert Leshner, CEO of Superstate, said in a written statement. “This investment allows Spark to maintain exposure to yield opportunities unrelated to Federal Reserve interest rate policy while operating within a compliant institutional framework. As the protocol adapts to the new interest rate environment, we are helping it do so within a regulated institutional framework,” he added.

“Superstate’s USCC funding will allow Spark to diversify its reserves while maintaining the same level of safety and compliance that Spark has always prioritized,” Sam MacPherson, CEO and co-founder of Phoenix Labs, said in a written statement. “As the on-chain ecosystem evolves, combining regulated returns with transparent and verifiable infrastructure is essential to provide stability and long-term value to Spark users,” he added.

With the yield on the 10-year U.S. Treasury note falling below 4% to 3.976% this week, the Fed’s cycle of interest rate cuts has put pressure on stablecoin issuers and decentralized finance protocols that rely on short-term government bonds to sustain operations and maintain compensation structures, triggering reduced incentives or a shift to alternative yield sources.

Superstate’s USCC fund utilizes a fundamental trading strategy that capitalizes on price discrepancies between spot and futures markets for major digital assets. The fund maintains market-neutral positions across Bitcoin, Ethereum, Solana, and

Spark expands return strategy with regulated allocations as cryptocurrency derivatives trading volume surges

This allocation allows Spark to maintain exposure to yield opportunities that are not directly affected by Federal Reserve interest rate decisions while staying within a regulated institutional structure. These developments coincide with increasing momentum in the cryptocurrency derivatives sector, as CME reported more than $900 billion in futures and options trading volume during the third quarter, primarily driven by Ethereum activity.

Active derivatives markets typically reinforce the small price spreads that underpin USCC’s carry-based strategies. Superstate’s funds are managed by Anchorage Digital, audited by Ernst & Young, and net asset values ​​are determined through NAV Fund Services. The fund’s holdings are fully disclosed and include Bitcoin, Ethereum, Solana, and XRP in custody and collateral positions, as well as CME futures and forward contracts with institutional partners such as FalconX.

As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.

• 
  
  
  

more articles