TLDR
- Spark and PayPal have partnered to integrate PayPal USD into SparkLend for improved liquidity.
- Deposits in PayPal USD have surpassed $100 million with plans to scale to $1 billion.
- Spark’s risk assessment and liquidity framework help PYUSD gain access to institutional markets.
- PayPal USD is now live on the Stellar network, expanding its global reach and use cases.
- The partnership positions Spark as a key player in driving stablecoin adoption in the DeFi space.
Spark, an on-chain asset allocator launched by Sky (formerly MakerDAO), has partnered with PayPal to boost liquidity for PayPal USD (PYUSD). This collaboration integrates PYUSD into SparkLend, allowing PayPal’s stablecoin to be utilized in Spark’s decentralized lending markets. As of now, deposits in PYUSD have surpassed $100 million, with expectations to grow to $1 billion.
SparkLend and PayPal USD’s Growth Potential
Since PayPal USD was added to SparkLend, the growth has been significant.
“Predictable access to deep liquidity is crucial for stablecoins like PYUSD to scale,” said Sam MacPherson, co-founder and CEO of Phoenix Labs, a key contributor to Spark.
He emphasized that Spark’s framework proves DeFi can provide stable market foundations necessary for global companies to bring stablecoins into the mainstream.
The Spark platform has a robust model for stablecoin growth. Tokens listed on SparkLend undergo a thorough risk assessment before gaining access to the institutional markets for supply and borrowing. Capital from Spark’s $8 billion-plus stablecoin reserves is deployed via the Spark Liquidity Layer, creating market depth and efficient capital allocation.
Spark’s Liquidity Layer and Stablecoin Adoption
Spark’s liquidity infrastructure positions it as a key player in driving adoption for stablecoins like PYUSD. The platform has already shown its capability to manage large-scale liquidity demands. Spark previously deployed $630 million in on-chain Bitcoin-backed loans to Coinbase, demonstrating its strength in the market.
The stablecoin market is growing rapidly. In just three months, stablecoin supply surged from $235 billion to $263 billion. Daily transaction volumes now regularly exceed $100 billion, showing the increasing demand for stablecoin adoption.
David Weber, Head of PYUSD Ecosystem at PayPal, highlighted the strategic importance of this partnership. “With total DeFi value approaching $150 billion, platforms like Spark are crucial for advancing PYUSD as a cornerstone for DeFi with deep liquidity,” he said. This collaboration helps PYUSD access new markets faster while ensuring compliance and composability from day one.
Expansion of PayPal USD Across Networks
In addition to SparkLend, PayPal USD is also expanding its reach across different blockchain networks. Recently, PYUSD went live on the Stellar network, marking another milestone for PayPal and Stellar. This expansion opens up new wallets, platforms, and business use cases, further extending PYUSD’s global presence.
The launch on Stellar was announced at the Stellar Meridian event in Rio de Janeiro on September 18. This event gathered blockchain leaders, investors, and policymakers, making it a fitting platform for this important announcement. The integration of PYUSD into multiple networks strengthens its position as a leading stablecoin in the DeFi space.
