PayPal has partnered with decentralized finance platform Spark to expand on-chain liquidity for its dollar-pegged stablecoin, PYUSD. The initiative aims to scale deposits from the current $100 million to $1 billion in the coming weeks, marking a major step in PayPal’s crypto push. PYUSD, issued by Paxos, was recently integrated into SparkLend, enabling users to supply and borrow the stablecoin through Spark’s $8 billion reserve pool.

The collaboration offers predictable borrowing costs instead of relying on costly market-making incentives. “Predictable access to deep liquidity is what allows stablecoins like PYUSD to scale quickly,” said Sam MacPherson, CEO of Phoenix Labs, highlighting the move as a blueprint for fintech adoption in decentralized finance.

The launch comes amid renewed momentum for stablecoins, with global supply climbing nearly $30 billion in three months to $263 billion and daily transaction volumes exceeding $100 billion. PayPal sees Spark’s role as pivotal in establishing PYUSD as a cornerstone of DeFi growth.