PayPal, Spark Partner to Increase PYUSD Liquidity to $1 Billion
PayPal and Spark have partnered to enhance liquidity for PayPal USD (PYUSD) onchain, aiming to increase deposits from $100 million to $1 billion soon.
PYUSD, issued by Paxos and pegged to the U.S. dollar, is now available on SparkLend, allowing users to supply and borrow it with support from Spark's $8 billion stablecoin reserve.
This strategy offers predictable depth at fixed borrowing costs, differing from traditional market-maker incentive programs.
The initiative serves as a model for fintech adoption of new stablecoins using DeFi, according to Sam MacPherson, CEO of Phoenix Labs.
Stablecoins are experiencing growth, with global supply increasing by $30 billion to $263 billion and daily transactions exceeding $100 billion.
Spark has previously deployed $630 million in on-chain Bitcoin-backed loans to Coinbase.
David Weber from PayPal emphasized the importance of platforms like Spark in advancing PYUSD within DeFi, with total DeFi value nearing $150 billion.
