PayPal teams up with Spark to boost PYUSD liquidity to $1b

PayPal partnered with the DeFi liquidity platform Spark to bring $1 billion in liquidity to its PYUSD stablecoin.

The battle for stablecoin dominance is heating up. On Thursday, Sept. 25, PayPal partnered with DeFi liquidity platform Spark to expand on-chain liquidity for its PYUSD stablecoin. The goal is to grow available liquidity to $1 billion, enabling PYUSD to challenge USDT and USDC.

Since its addition to the SparkLend platform, deposits to PYUSD liquidity pools have already surpassed $100. Spark plans to scale this figure to $1 billion in the coming weeks by deploying capital from its $8 billion liquidity reserves.

PayPal plans to tap into DeFi liquidity

Spark’s platform enables users to deploy idle reserves in stablecoin borrowing. For PYUSD, this boosts adoption by making the stablecoin more useful across the DeFi ecosystem.

At the time of the announcement, total stablecoin supply rose by $30 billion in the past three months, reaching an all-time high of $295 billion. At the same time, daily transaction volumes regularly touch $100 billion.