PayPal Taps Spark to Boost PYUSD Liquidity by $1B Through DeFi Lending

PayPal and decentralized concern level Spark person teamed up to turn liquidity for PayPal USD (PYUSD) onchain, aiming to standard deposits from $100 cardinal contiguous to $1 cardinal successful the weeks ahead.

PYUSD, issued by Paxos and pegged to the U.S. dollar, was precocious onboarded to SparkLend, Spark’s lending marketplace. The integration gives users the quality to proviso and get PYUSD, with liquidity supported by Spark’s $8 cardinal stablecoin reserve pool.

This attack contrasts with accepted liquidity programs that trust connected costly market-maker incentives, alternatively offering predictable extent astatine acceptable borrowing costs.

“Predictable entree to heavy liquidity is what allows stablecoins similar PYUSD to standard quickly,” said Sam MacPherson, CEO of Phoenix Labs, a Spark contributor. He framed the inaugural arsenic a blueprint for however fintech firms tin usage DeFi to bootstrap adoption of caller stablecoins.

The concern comes arsenic stablecoins spot renewed momentum, with planetary proviso climbing astir $30 cardinal successful 3 months to $263 cardinal and regular transaction volumes topping $100 billion.

Spark antecedently deployed $630 cardinal successful on-chain Bitcoin-backed loans to Coinbase.

“With full DeFi worth approaching $150 billion, platforms similar Spark are important to advancing PYUSD arsenic a cornerstone for defi with heavy liquidity,” said David Weber, Head of PYUSD Ecosystem, PayPal successful a property release.