PayPal and Spark target $1B liquidity boost for PYUSD
The plan is to scale PayPal USD with Spark’s liquidity framework, building sustainable stablecoin markets
Phoenix Labs CEO Sam MacPherson | DAS 2022 Blockworks
PayPal and decentralized finance platform Spark have launched a joint initiative to expand liquidity for PayPal USD (PYUSD). Deposits have already surpassed $100 million since the token was added to SparkLend on Sept 25.
The collaboration aims to grow that figure to $1 billion in the coming weeks, offering PayPal a DeFi-native route to scale its stablecoin.
Spark, an institutional-grade asset allocator, operates a Liquidity Layer that deploys more than $8 billion in stablecoin reserves into lending markets. This model replaces the short-lived incentive programs traditionally used to grow stablecoin adoption, instead offering predictable borrowing costs and deep market liquidity.
Phoenix Labs CEO Sam MacPherson said Spark’s framework shows how “DeFi can provide the reliable market foundations that global companies need to bring stablecoins into the mainstream economy.”
PYUSD, which is issued by Paxos Trust Company and backed by US dollar reserves and Treasuries, was launched in 2023 as PayPal’s entry into digital dollars. Its integration with Spark comes as stablecoin supply has surged nearly $30 billion in the past quarter, with daily transaction volumes now exceeding $100 billion.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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