PayPal’s PYUSD Gains $135M as Spark Partnership Boosts Liquidity

- SparkLend partnership drives over $135 million in PYUSD deposits. - Integration reflects growing stablecoin market and shift toward yield-bearing assets. PayPal has partnered with the decentralized finance (DeFi) protocol Spark to expand liquidity for its USD-backed stablecoin, PayPal USD (PYUSD). This move integrates PYUSD into Spark’s lending market, SparkLend, and solidifies its position in the rapidly evolving stablecoin space. Since the integration in August, PYUSD has attracted over $135 million in deposits, signaling strong market interest. Spark operates a non-custodial lending protocol that allows users to deposit stablecoins and earn yields. With $8 billion in stablecoin reserves, Spark enables large-scale capital deployment across DeFi ecosystems. PayPal’s choice to collaborate with Spark highlights its focus on scaling PYUSD liquidity by leveraging SparkLend’s infrastructure to reach a wider audience. The partnership aligns with broader growth trends in the stablecoin market, which now boasts a total capitalization nearing $300 billion—an increase of $90 billion since January 2025. Regulatory shifts, including the Markets in Crypto-Assets Regulation (MiCA) in Europe and the Genius Act in the United States, underpin this growth. Moreover, the sector is transitioning to “stablecoin 2.0,” an evolution that introduces yield-generating functionalities, such as those SparkLend offers, which further drives innovation. Before including PYUSD, Spark conducted rigorous risk assessments to ensure platform stability. This diligence has paid off, as SparkLend and the broader DeFi lending market have experienced 70% growth year-to-date. Institutional interest and new technological advancements contribute significantly to this upward momentum. According to CoinMarketCap data on September 25, 2025, PayPal USD (PYUSD) was trading at $1.00 as of 21:08 UTC, while its 24-hour trading volume showed a minor 0.01% decline.