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To Expand Stablecoins, PayPal and Spark Create the Core Liquidity Infrastructure for DeFi

To Expand Stablecoins, PayPal and Spark Create the Core Liquidity Infrastructure for DeFi

Bitget-RWA2025/09/26 00:32
By: Coin World
- PayPal and Spark collaborate to expand PYUSD liquidity via DeFi, targeting $1B in deposits within weeks. - Spark’s $8B reserve pool and automated model enable scalable, cost-effective liquidity for stablecoin growth. - PYUSD integration into SparkLend allows cross-chain payments while maintaining compliance and composability. - Analysts highlight the partnership’s potential to redefine stablecoin competition through institutional-grade DeFi solutions.
To Expand Stablecoins, PayPal and Spark Create the Core Liquidity Infrastructure for DeFi image 0

PayPal and the decentralized finance (DeFi) platform

have revealed a strategic partnership aimed at significantly increasing liquidity for USD (PYUSD), a stablecoin backed by the U.S. dollar, with plans to grow deposits from $100 million to $1 billion in the coming weeks PayPal Taps Spark to Boost PYUSD Liquidity by $1B Through [ 1 ]. This collaboration utilizes Spark’s $8 billion stablecoin reserve to ensure stable borrowing rates and robust market liquidity, setting it apart from traditional liquidity programs that depend on expensive incentives for market makers PayPal and Spark partner to supercharge PYUSD with $1B liquidity [ 3 ]. PYUSD, issued by Paxos Trust Company and pegged to the U.S. dollar, was recently added to SparkLend, Spark’s lending platform, allowing users to both supply and borrow the stablecoin PayPal Taps Spark to Boost PYUSD Liquidity by $1B Through [ 1 ].

This alliance is designed to establish PYUSD as a key asset for DeFi liquidity. Spark CEO Sam MacPherson noted that “consistent access to deep liquidity is essential for stablecoins like PYUSD to achieve rapid growth” PayPal Taps Spark to Boost PYUSD Liquidity by $1B Through [ 1 ]. Spark’s automated capital allocation system, supported by its $8 billion balance sheet, enables stablecoin issuers to avoid fragmented third-party liquidity sources, speeding up adoption Spark and PayPal Target $1B PYUSD Supply In DeFi Liquidity Push [ 2 ]. David Weber, PayPal’s Head of PYUSD Ecosystem, commented that platforms such as Spark are vital for advancing PYUSD as a “foundational DeFi asset with substantial liquidity,” supporting rapid market growth while ensuring compliance and interoperability PayPal and Spark partner to supercharge PYUSD with $1B liquidity [ 3 ].

This initiative reflects broader developments in the stablecoin sector, where global supply has increased by nearly $30 billion over the past three months, reaching $263 billion, and daily transaction volumes now exceed $100 billion PayPal Taps Spark to Boost PYUSD Liquidity by $1B Through [ 1 ]. Spark’s track record in managing large-scale liquidity, such as a $630 million Bitcoin-backed loan for Coinbase, highlights its ability to support PayPal’s objectives PayPal and Spark partner to supercharge PYUSD with $1B liquidity [ 3 ]. The project also fits into PayPal’s broader strategy to enhance PYUSD’s use cases, including integrations with

, Stellar, and Stablechain. These moves have expanded PYUSD’s presence beyond into cross-chain networks, supporting quicker, more affordable international payments and embedding the stablecoin into global retail payment systems Spark and PayPal Target $1B PYUSD Supply In DeFi Liquidity Push [ 2 ].

Industry experts point out that this partnership could redefine competition among stablecoins. By merging PayPal’s compliance-oriented approach with Spark’s decentralized technology, the collaboration sets a new standard for institutional stablecoin launches. This approach addresses persistent liquidity challenges in DeFi, minimizing slippage for traders and offering investors a more stable alternative to incentive-based liquidity models Spark and PayPal Target $1B PYUSD Supply In DeFi Liquidity Push [ 2 ]. Phoenix Labs CEO Sam MacPherson, a key contributor to Spark, described the initiative as evidence that DeFi can deliver “dependable market infrastructure” for global enterprises to bring stablecoins into mainstream use PayPal and Spark target $1B liquidity boost for PYUSD [ 4 ].

The timing of this collaboration is significant, as the DeFi industry nears $150 billion in total value locked. PayPal’s efforts to grow PYUSD are in line with its larger goal of integrating stablecoins into everyday financial systems, using programmable digital assets to enable seamless, borderless payments and financial services PayPal and Spark partner to supercharge PYUSD with $1B liquidity [ 3 ]. With Spark’s liquidity infrastructure already handling tens of millions of USDC-to-PYUSD swaps each day, the partnership is well positioned to achieve its $1 billion goal, potentially redefining PYUSD’s place in the digital financial landscape PayPal and Spark partner to supercharge PYUSD with $1B liquidity [ 3 ].

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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