Spark, Uniswap build stablecoin 'FX Layer' seeded with $150 million liquidity migration

Spark and Uniswap have teamed up to build the "FX Layer," a stablecoin swap system designed to help institutions move between dollar-pegged tokens with minimal slippage.

The FX Layer acts as a shared liquidity and exchange infrastructure on Uniswap v4, enabling multiple stablecoin issuers like banks, fintechs, and payment companies to plug into a common system instead of each building and bootstrapping their own liquidity pools, market makers, and inventory management, according to an announcement on Thursday.

Spark acts as the orchestration layer, deciding how liquidity is allocated, governed, and coordinated across different stablecoins, while Uniswap provides the programmable AMM architecture. 

The move comes not only as institutions increasingly explore launching standalone, branded stablecoins, but also as the stablecoin market cap continues to grow, especially following the passage of the GENIUS Act last year. A recent report, looking at Visa and Mastercard’s theoretical stablecoin opportunities, said volumes could hit $1.5 quadrillion by 2035.

However, other experts have pushed back, saying real-world stablecoin deployments may be limited if moving between these different dollar wrappers cannot always be exchanged or redeemed for $1, especially when compared to alternative forms of digital money, like tokenized deposits or central bank digital currencies.

“The next generation of stablecoins won't be defined by who can issue another digital dollar. It will be defined by the infrastructure that allows hundreds of issuers to operate together at global scale," Spark CEO Sam MacPherson said. "The native stablecoin remains visible. The liquidity infrastructure becomes invisible. That's the future we're building.”

As part of Thursday's announcement, Spark said it will migrate $150 million from its USDS ecosystem to Uniswap v4 to establish a "liquidity foundation" for a swap pool supporting USDS, Tether's USDT, and PayPal's PYUSD.

USDS is the USD-pegged stablecoin issued by Sky (formerly MakerDAO), serving as the direct successor to DAI. It is the third-largest stablecoin after Tether and Circle’s offerings, and the largest crypto-native option.