PayPal Partners with Spark to Inject $1 Billion Liquidity into PYUSD Stablecoin

PayPal has forged a strategic alliance with decentralized finance (DeFi) liquidity platform Spark to amplify on-chain liquidity for its PYUSD stablecoin. The collaboration targets a $1 billion liquidity pool, positioning PYUSD to compete with dominant stablecoins like USDT and USDC.

Spark's Liquidity LAYER will deploy $8 billion in reserves to bootstrap PYUSD adoption, with initial deposits surpassing $100 million shortly after integration with SparkLend. "Predictable access to deep liquidity enables stablecoins to achieve rapid scale," noted Sam MacPherson, CEO of Phoenix Labs, a core contributor to Spark. The move demonstrates how DeFi infrastructure can support traditional financial players in mainstreaming digital assets.

The initiative marks PayPal's deliberate pivot toward leveraging DeFi mechanisms. By utilizing Spark's platform for yield-bearing stablecoin deployment, PYUSD gains utility across lending protocols and decentralized exchanges—a critical step in challenging established stablecoin incumbents.