coindesk.com
PayPal and decentralized finance platform Spark have teamed up to grow liquidity for $PYUSD$0.9993 onchain, aiming to scale deposits from $100 million today to $1 billion in the weeks ahead.
$PYUSD, issued by Paxos and pegged to the U.S. dollar, was recently onboarded to SparkLend, Spark’s lending marketplace. The integration gives users the ability to supply and borrow $PYUSD, with liquidity supported by Spark’s $8 billion stablecoin reserve pool.
This approach contrasts with traditional liquidity programs that rely on expensive market-maker incentives, instead offering predictable depth at set borrowing costs.
“Predictable access to deep liquidity is what allows stablecoins like $PYUSD to scale quickly,” said Sam MacPherson, CEO of Phoenix Labs, a Spark contributor. He framed the initiative as a blueprint for how fintech firms can use DeFi to bootstrap adoption of new stablecoins.
The partnership comes as stablecoins see renewed momentum, with global supply climbing nearly $30 billion in three months to $263 billion and daily transaction volumes topping $100 billion.
Spark previously deployed $630 million in on-chain Bitcoin-backed loans to Coinbase.
“With total DeFi value approaching $150 billion, platforms like Spark are crucial to advancing $PYUSD as a cornerstone for defi with deep liquidity,” said David Weber, Head of $PYUSD Ecosystem, PayPal in a press release.