PayPal is deepening its commitment to digital assets through a new partnership with decentralized finance (DeFi) platform Spark, aimed at significantly scaling the on-chain liquidity of its stablecoin, PYUSD. The initiative targets a major leap in deposits—from the current $100 million to $1 billion in the coming weeks—as PayPal positions PYUSD to become a key player in the DeFi ecosystem.
Spark Integration Boosts PYUSD Utility in DeFi
Issued by Paxos, PYUSD is now fully integrated into SparkLend, a lending protocol backed by Spark’s robust $8 billion reserve pool. This allows users to supply PYUSD as collateral or borrow it directly through the platform.
Unlike traditional DeFi models that depend on expensive market-making incentives, Spark’s system offers predictable borrowing costs, which is seen as a game-changer for stablecoin scalability. According to Sam MacPherson, CEO of Phoenix Labs, the firm behind Spark, this partnership lays the groundwork for broader fintech adoption in the DeFi space.
“Predictable access to deep liquidity is what allows stablecoins like PYUSD to scale quickly,” MacPherson explained. “This collaboration is a blueprint for how traditional fintech can effectively participate in decentralized finance.”
PYUSD Growth Aligns with Stablecoin Market Momentum
The partnership comes at a time of growing momentum in the stablecoin market. Over the past three months, global stablecoin supply has increased by nearly $30 billion, reaching $263 billion. Daily transaction volumes have also surged, now exceeding $100 billion—a strong indicator of rising adoption and utility.
With Spark’s infrastructure and liquidity, PayPal aims to establish PYUSD as a cornerstone of DeFi growth. The company views this initiative as a strategic move that not only scales its stablecoin offering but also bridges traditional finance with the decentralized future.
As stablecoins continue to gain traction globally, PayPal’s proactive stance in DeFi marks a significant step forward for institutional crypto adoption—and PYUSD may soon become a go-to asset in on-chain financial activity.
