TechFlow news, September 25 — According to CoinDesk, PayPal has partnered with decentralized finance platform Spark to expand the on-chain liquidity of PayPal USD (PYUSD) from its current $100 million to $1 billion through decentralized finance lending.
PYUSD, issued by Paxos and pegged to the U.S. dollar, has been integrated into Spark's lending market, SparkLend. This integration enables users to supply and borrow PYUSD, with liquidity backed by Spark’s $8 billion stablecoin reserve pool. Within weeks of launch, deposits of PYUSD on SparkLend have exceeded $100 million.
Sam MacPherson, CEO of Phoenix Labs, said that predictable deep liquidity access is key to the rapid scaling of stablecoins like PYUSD. This partnership model contrasts with traditional liquidity programs that rely on costly market maker incentives, instead offering predictable depth by setting borrowing costs.
