PayPal and Spark target $1B liquidity boost for PYUSD

PayPal and the decentralized finance platform Spark have initiated a partnership aimed at enhancing liquidity for PayPal USD (PYUSD). Following the token's introduction to SparkLend, deposits have surpassed $100 million, with plans to expand this figure to $1 billion in the coming weeks. The collaboration provides PayPal with a DeFi-native approach to scaling its stablecoin. Spark operates a Liquidity Layer that utilizes over $8 billion in stablecoin reserves, promoting sustainable stablecoin markets by offering consistent borrowing costs and substantial market liquidity rather than relying on temporary incentive programs. Phoenix Labs CEO Sam MacPherson emphasized that this framework demonstrates how DeFi can establish the reliable market foundations required for the mainstream acceptance of stablecoins. PYUSD, launched in 2023 and backed by US dollar reserves and Treasuries, is entering a time when stablecoin supply has significantly increased, with daily transaction volumes exceeding $100 billion.

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