PayPal Partners With DeFi Firm Spark to Boost PYUSD Stablecoin Liquidity

Decentralized finance firm Spark onboarded PayPal’s stablecoin, PYUSD, and plans to grow it.

PYUSD deposits on Spark’s decentralized, non-custodial liquidity market for lenders and borrowers, SparkLend, surpassed $200 million, and Spark plans to increase that to $1 billion within weeks, Spark said in a Thursday (Sept. 25) blog post.

“This milestone reflects both the demand for PYUSD and the effectiveness of Spark’s stablecoin bootstrapping framework,” the post said.

Spark said in the post that it helps new stablecoins grow by adding them in SparkLend to create a lending market for supply and borrowing, integrating with the Spark Liquidity Layer to make the stablecoins available for use in the broader market, setting a supportive base rate to create natural demand for the tokens, and supporting on-chain liquidity with decentralized exchanges.

“By combining lending infrastructure, liquidity injection and incentive alignment, Spark enables new stablecoins to scale,” the post said. “This creates movement in the market, unlocking attractive borrowing opportunities and reinforcing DeFi’s modular structure—where individual components, when connected, generate systemic growth.”

PayPal said in a Thursday post on social platform X, which linked to Spark’s blog post: “[Spark] and PayPal are joining forces to increase global liquidity for PYUSD up to $1B! Over $100M more PYUSD has already been injected into the ecosystem with more in the coming weeks.”

More liquidity: @Sparkdotfi and PayPal are joining forces to increase global liquidity for PYUSD up to $1B! Over $100M more PYUSD has already been injected into the ecosystem with more in the coming weeks: https://t.co/WM9DpckO8k 2/6

— PayPal (@PayPal) September 25, 2025

In another, separate development, Layer-1 blockchain network Stable said Monday (Sept. 22) that it will enable users to utilize PYUSD on its blockchain, Stablechain, which is designed to enable seamless financial transactions through stablecoins.

Stable also said that PayPal Ventures invested in its latest funding round and that Stable and PayPal will explore providing cross-chain compatibility and on-ramp/off-ramp capabilities for the stablecoin, as well as future products related to payments and stablecoin utility.

David Weber, head of PYUSD ecosystem at PayPal, said in the announcement of the Stable partnership: “This work with Stable reflects our commitment to expanding PYUSD’s utility across multiple blockchain ecosystems and driving adoption. Stable’s focus on fast, seamless financial transactions using stablecoins removes traditional friction points for users.”