PayPal and Spark Aim for $1B Liquidity Boost for PYUSD Stablecoin

PayPal has partnered with decentralized finance platform Spark to scale liquidity for its PayPal USD (PYUSD) stablecoin. The initiative, which began with PYUSD's integration into SparkLend on September 25, has already attracted over $100 million in deposits.

Spark's institutional-grade liquidity framework, which manages $8 billion in stablecoin reserves, replaces traditional incentive programs with predictable borrowing costs. Phoenix Labs CEO Sam MacPherson notes this demonstrates how DeFi can provide the stability required for mainstream corporate stablecoin adoption.

The PYUSD stablecoin, issued by Paxos and backed by dollar reserves, enters this partnership as the broader stablecoin market sees remarkable growth - with supply increasing by $30 billion last quarter and daily volumes surpassing $100 billion.