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Spark Drives $1B PYUSD Liquidity Boom for PayPal Through DeFi

Spark Drives $1B PYUSD Liquidity Boom for PayPal Through DeFi

Bitget-RWA2025/09/25 15:26
By:Coin World

- PayPal partners with Spark to inject $1B in PYUSD liquidity via SparkLend’s $8B reserve pool, aiming to scale deposits from $100M to $1B. - Spark’s model offers 7-8% lower costs than market makers, enabling predictable borrowing rates and bypassing traditional liquidity intermediaries. - PYUSD deposits now exceed $200M, with Spark swapping tens of millions of USDC daily to build liquidity depth and drive DeFi adoption. - The partnership aligns with $263B stablecoin growth and $150B DeFi TVL, leveraging s

Spark Drives $1B PYUSD Liquidity Boom for PayPal Through DeFi image 0

PayPal has joined forces with decentralized finance (DeFi) platform

to channel $1 billion in liquidity into its stablecoin, PYUSD, via SparkLend, Spark’s lending platform. This collaboration seeks to rapidly grow PYUSD deposits from $100 million to $1 billion in a matter of weeks, utilizing Spark’s $8 billion stablecoin reserve to provide a more affordable alternative to traditional liquidity programs that depend on market maker incentives PayPay Taps Spark to Boost PYUSD Liquidity by $1B Through DeFi Lending [ 1 ]. PYUSD, which is issued by Paxos and tied to the U.S. dollar, was recently made available on SparkLend, allowing users to lend and borrow the stablecoin with stable borrowing rates. Unlike conventional approaches that often result in “low double-digit” costs due to third-party market makers, this method offers more predictable expenses, according to Sam MacPherson, CEO of Phoenix Labs and a Spark collaborator PayPal Taps DeFi’s Spark to Inject $1B into PYUSD Stablecoin [ 2 ].

This alliance highlights PayPal’s intention to establish PYUSD as a foundational asset in DeFi, leveraging the sector’s rapid expansion. The total value in DeFi is nearing $150 billion, while stablecoin supply has jumped to $263 billion over the past three months, with daily trading volumes surpassing $100 billion PayPal Taps DeFi’s Spark to Inject $1B into PYUSD Stablecoin [ 2 ]. MacPherson pointed out that Spark’s approach delivers “inexpensive capital” at rates 7-8% below those offered by market makers, emphasizing its scalability and effectiveness. The partnership has already pushed PYUSD deposits to $200 million, with Spark exchanging “tens of millions of

for PYUSD each day” to strengthen liquidity PayPal Taps DeFi’s Spark to Inject $1B into PYUSD Stablecoin [ 2 ].

David Weber, who leads the PYUSD Ecosystem at

, emphasized that this initiative is key to driving PYUSD adoption while ensuring compliance and interoperability. “Platforms such as Spark are vital for establishing PYUSD as a core DeFi asset,” Weber said, noting that the partnership accelerates the stablecoin’s market reach PayPay Taps Spark to Boost PYUSD Liquidity by $1B Through DeFi Lending [ 1 ]. Spark’s integration of PYUSD follows its earlier deployment of $630 million in on-chain Bitcoin-backed loans to Coinbase, showcasing its ability to meet large-scale fintech needs PayPal Taps DeFi’s Spark to Inject $1B into PYUSD Stablecoin [ 2 ].

This move reflects a broader trend in stablecoin adoption, with global supply increasing by almost $30 billion in the last three months. MacPherson also noted that clearer regulatory guidance is encouraging more traditional fintech players to participate, as stablecoins become a foundation for on-chain finance. The success of this partnership could serve as a model for other fintech companies aiming to use DeFi to scale stablecoins, especially in markets where transaction speed and cost stability are crucial PayPal Taps DeFi’s Spark to Inject $1B into PYUSD Stablecoin [ 2 ].

Importantly, this effort tackles the liquidity issues that have previously limited stablecoin expansion. By avoiding costly intermediaries, Spark’s system creates a sustainable way for PYUSD to achieve robust and accessible liquidity. This approach is especially relevant as stablecoins come under scrutiny for systemic risks, with both regulators and market players seeking solutions that combine innovation with financial stability PayPay Taps Spark to Boost PYUSD Liquidity by $1B Through DeFi Lending [ 1 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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