PayPal has partnered with decentralized finance platform Spark to expand on-chain liquidity for PayPal USD (PYUSD) from its current $100 million to $1 billion through decentralized finance lending. PYUSD, issued by Paxos and pegged to the US dollar, has been integrated into Spark's lending marketplace, SparkLend. This integration allows users to provide and borrow PYUSD, with liquidity backed by Spark's $8 billion stablecoin reserve pool. Within weeks of launch, PYUSD deposits on SparkLend exceeded $100 million. Phoenix Labs CEO Sam MacPherson stated that predictable access to deep liquidity is key to the rapid expansion of stablecoins like PYUSD. This partnership model contrasts with traditional liquidity programs that rely on expensive market maker incentives, providing predictable depth through set borrowing costs. (CoinDesk)