PayPal has teamed up with DeFi platform Spark to grow liquidity for its U.S. dollar-pegged PYUSD stablecoin, aiming to scale on-chain deposits from $100 million to $1 billion in the coming weeks. PYUSD, issued by Paxos, was recently added to SparkLend, Spark’s lending marketplace.
The integration allows users to supply and borrow PYUSD, supported by Spark’s $8 billion stablecoin reserve pool. Unlike costly market-maker incentive programs, Spark provides predictable liquidity at fixed borrowing costs.
Sam MacPherson, CEO of Phoenix Labs and Spark contributor, said this framework demonstrates how fintechs can use DeFi to bootstrap new stablecoins. Global stablecoin supply has climbed nearly $30 billion over three months, reaching $263 billion, with daily transactions exceeding $100 billion.
PayPal’s David Weber, head of PYUSD Ecosystem, called Spark’s $150 billion DeFi network crucial for making PYUSD a cornerstone of on-chain liquidity. Spark earlier facilitated $630 million in Bitcoin-backed loans to Coinbase, further highlighting its expanding footprint.
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