Financial giants join forces with DeFi blue chips: PayPal partners with Spark to push PYUSD liquidity to break the 1 billion USD barrier.

PayPal and the on-chain asset allocation platform Spark, launched by Sky (formerly the core team of MakerDAO), announced a strategic partnership aimed at significantly expanding the liquidity of PayPal USD (PYUSD) stablecoin. Since the integration of PYUSD into SparkLend, deposits have quickly surpassed 100 million USD, and both parties expect this figure to scale up to 1 billion USD in the future. Spark co-founder and CEO Sam MacPherson stated that this predictable and deep liquidity is key to the rapid mainstreaming of PYUSD, demonstrating that DeFi can provide the reliable market foundation necessary for global companies to enter the mainstream economy.

PayPal leverages Spark: PYUSD deposit target aims for 1 billion USD

As a deep collaboration between global payment giants and DeFi blue-chip teams, the core of this partnership is to build institutional-grade liquidity infrastructure for PYUSD, a dollar-backed stablecoin.

· Liquidity is rapidly rising: According to the press release, after PYUSD was integrated into the SparkLend platform, the deposit amount has exceeded 100 million USD, demonstrating strong market demand for this stablecoin and the efficient guidance capability of the Spark platform.

· Key Objective: The goal of both parties is to expand the liquidity scale of PYUSD to 1 billion USD, promoting its deep integration in the DeFi space. David Weber, head of the PayPal PYUSD ecosystem, emphasized that through collaboration, PYUSD can enter new markets more quickly while maintaining full compliance and composability, thereby becoming a cornerstone of DeFi.

· Institutional Liquidity Blueprint: The core contributor of Spark, Phoenix Labs, explains that its Spark Liquidity Layer (SLL) creates market depth and optimizes capital allocation efficiency by deploying over $8 billion in stablecoin reserves from Spark. The initial borrowing rates on the platform have been specially calibrated to encourage adoption and drive organic demand.

Stablecoin Position Consolidation: Decentralized Finance Value Approaching 150 Billion USD

This collaboration occurs during a critical period of rapid growth in the stablecoin industry, highlighting the increasingly important bridging role of stablecoins between traditional finance and Decentralized Finance.

· Market size surges: Within just three months, the total supply of global stablecoins has skyrocketed from USD 235 billion to USD 263 billion, with daily trading volumes often exceeding USD 100 billion, reflecting an unprecedented rise in demand and usage frequency for stablecoins.

· Proof of Strength of Spark: The Spark platform has demonstrated its ability to manage large-scale liquidity demands, having successfully deployed $630 million in on-chain Bitcoin-backed loans to mainstream CEXs.

· DeFi Cornerstone: As the total value of DeFi (TVL) approaches 150 billion USD, Spark is positioning itself as a key builder of the liquidity infrastructure required for the adoption of crypto assets in financial technology (Fintech).

Cross-Chain Expansion Accelerates: PYUSD Officially Launches on the Stellar Network

While expanding in-depth cooperation in Decentralized Finance, the cross-chain expansion of PYUSD is also underway, aiming to enhance its global payment efficiency.

· Cross-chain deployment: PYUSD is issued by Paxos Trust Company and is fully backed by USD deposits and short-term US Treasury bonds. It is currently operating on the Ethereum mainnet and has established a cross-chain expansion roadmap.

· Stellar Launch: At the Stellar Meridian annual conference held on September 18 in Copacabana, Rio de Janeiro, PayPal USD (PYUSD) officially announced its launch on the Stellar network. This deployment is an important milestone for PayPal and Stellar, expanding the reach of PYUSD to new wallets, platforms, and commercial use cases in the global payment space.

Conclusion

The strong alliance between PayPal and Spark is not only another example of traditional financial giants embracing DeFi technology, but also a firm optimism about the market potential of PYUSD. With the institutional-level liquidity framework provided by Spark, PYUSD is expected to quickly achieve a scale target of 1 billion USD, consolidating its core position as a next-generation compliant stablecoin in the DeFi ecosystem. As the overall expansion of the stablecoin market and the growth of PYUSD on global payment networks like Stellar continue, this collaboration signifies that compliant stablecoins are accelerating their integration into mainstream finance and the global cross-border payment system, opening a new chapter for DeFi with greater depth and compliance.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.