DeFi Platform Shifts Focus from Consumer App to B2B Infrastructure

Revenue dropped from $80 million to $20 million amid market downturn, with OTC lending projected to reach $1 billion by year-end.

By Francisco Rodrigues | Edited by Nikhilesh De Aug 2, 2026, 5:00 p.m. 4 min read

The decentralized finance (DeFi) platform Spark has decided to discontinue its consumer app indefinitely, opting instead to pivot towards a business-to-business (B2B) and business-to-business-to-consumer (B2B2C) model. This shift allows Spark to provide yield to established firms such as Robinhood, rather than competing for users directly.

• Spark's consumer app was shelved as it faced stiff competition from firms like Coinbase and PayPal.
• Robinhood's Earn product utilizes a Morpho onchain vault, with Spark contributing as one of three collateral sources.
• Revenue has plummeted from $80 million to $20 million during the bear market, while outstanding OTC lending has reached $260 million, with a goal of hitting $1 billion by the end of the year.

The stablecoin market is currently experiencing fragmentation, and Spark aims to take advantage of this trend. With various fintechs and exchanges launching their own dollar-pegged tokens, competition is intensifying as each issuer seeks to retain users and transaction activity within their ecosystems.

Sam MacPherson, CEO of Phoenix Labs, noted that the stablecoin market is likely to continue fragmenting. Major players like PayPal (with PYUSD), Circle (issuing USDC), and Tether (with USDT) are expanding their offerings, while Robinhood is developing its own chain as part of the Global Dollar consortium.

This surge in stablecoins has led to liquidity being distributed across a growing number of tokens and networks. Spark is positioning itself as the intermediary that facilitates connections between these networks, aiming to enhance liquidity flow.

As part of its infrastructure strategy, Spark is an offshoot of Sky, formerly known as MakerDAO, and the issuer of the USDS stablecoin. The platform has recently migrated approximately $150 million into Uniswap v4 pools, enabling significant stablecoin swaps.

In addition, Spark has established partnerships to enhance liquidity for various tokens, including a collaboration with PayPal to improve PYUSD liquidity.

MacPherson anticipates that payments will drive significant growth in the onchain space, projecting that onchain payments could reach $3 trillion by 2030, especially with the upcoming GENIUS and Clarity Acts.

Transition from Consumer-Focused App to Backend Services

The decision to halt the consumer app stemmed from the realization that competing in the consumer space is exceptionally challenging. MacPherson acknowledged that while the app was initially "paused, not canceled," it is now considered "paused indefinitely." Instead of building its own customer base, Spark has shifted focus to supplying yield and liquidity to existing applications.

Robinhood's Earn product exemplifies this new model, offering an annual percentage yield (APY) of around 7% on USDG deposits, while routing user funds into a Morpho onchain vault. This model has attracted over $200 million in deposits in a short span.

By adopting this approach, Spark gains access to retail deposits without needing to manage customer relationships directly. The collaborative nature of the ecosystem, involving protocols like Morpho and advisory firms like Steakhouse Financial, further supports this strategy.

MacPherson expects this model to scale significantly, with the potential to grow to billions in deposits due to Robinhood's substantial user base.

Focus on Institutional Lending

Spark's backend strategy also encompasses direct lending to institutions. However, the company is navigating a challenging market, with its annual revenue dropping from $80 million to approximately $20 million. The firm currently has about $260 million in Bitcoin-backed loans outstanding.

MacPherson indicated that while the target for outstanding balances is ambitious, aiming for $1 billion by year-end, the demand has been somewhat tempered by current market conditions. Borrowers such as bitcoin miners continue to seek funding, highlighting the ongoing need for liquidity.

Spark Prime, a hybrid prime brokerage, is also in beta with $20 million in outstanding loans. Conversations with traditional finance firms are increasing, aided by institutional interest in crypto trading venues.

To bolster its credibility, Spark is pursuing credit ratings from established agencies like S&P and Moody's, which could facilitate institutional partnerships. Despite the bear market, MacPherson remains optimistic, citing strong fundamentals and regulatory clarity as indicators of resilience in the institutional sector.

Ultimately, Spark aims to serve as a vital intermediary in a fragmented market, providing essential liquidity services to participants across the evolving landscape of decentralized finance.