PayPal teams up with Spark to boost PYUSD liquidity to $1b
PayPal partnered with the DeFi liquidity platform Spark to bring $1 billion in liquidity to its PYUSD stablecoin.
- PayPal partnered with the DeFi liquidity platform Spark
- The goal is to boost PYUSD liquidity to $1 billion in the coming weeks
- Spark’s Liquidity Layer will deploy $8 billion in reserves into PYUSD pools
The battle for stablecoin dominance is heating up. On Thursday, Sept. 25, PayPal partnered with DeFi liquidity platform Spark to expand on-chain liquidity for its PYUSD stablecoin. The goal is to grow available liquidity to $1 billion, enabling PYUSD to challenge USDT and USDC.
Since its addition to the SparkLend platform, deposits to PYUSD liquidity pools have already surpassed $100. Spark plans to scale this figure to $1 billion in the coming weeks by deploying capital from its $8 billion liquidity reserves.
“Predictable access to deep liquidity is what allows stablecoins like PYUSD to scale quickly,” says Sam MacPherson, Co-Founder and CEO of Phoenix Labs, a core contributor to Spark. “Spark’s framework proves how DeFi can provide the reliable market foundations that global companies need to bring stablecoins into the mainstream economy.”
PayPal plans to tap into DeFi liquidity
Spark’s platform enables users to deploy idle reserves in stablecoin borrowing. For PYUSD, this boosts adoption by making the stablecoin more useful across the DeFi ecosystem.
“With total DeFi value approaching $150 billion, platforms like Spark are crucial to advancing as a cornerstone for DeFi with deep liquidity. By working together, PYUSD can reach new markets faster while maintaining full compliance and composability from day one”, says David Weber, Head of PYUSD Ecosystem, PayPal.
At the time of the announcement, total stablecoin supply rose by $30 billion in the past three months, reaching an all-time high of $295 billion. At the same time, daily transaction volumes regularly touch $100 billion.
