PayPal has partnered with the decentralized finance (DeFi) protocol Spark to expand the liquidity of its US dollar stablecoin, PayPal USD (PYUSD).
According to a statement on Thursday, since the launch of SparkLend, a lending market focused on stablecoins, in August, PayPal's stablecoin has attracted over $135 million in deposits.
SparkLend was launched in 2023 from the MakerDAO ecosystem and later integrated into Maker's successor entity, Sky. According to the protocol, it operates a Spark liquidity layer supported by over $8 billion in stablecoin reserves.
Sam MacPherson, co-founder and CEO of Spark core contributor Phoenix Labs, told Cointelegraph that PayPal chose Spark because it "is the only large-scale DeFi protocol capable of actively deploying capital to other protocols." He added:
Spark is a non-custodial lending protocol where users deposit stablecoins into Spark Savings and earn non-repricing yield tokens. According to Messari, these tokens maintain a fixed balance but increase in value over time, with yields set by Sky governance and funded through protocol revenue.
PYUSD was added to SparkLend after a risk assessment through the protocol.
With the European crypto asset market regulation (MiCA) taking effect in January and the U.S. passing the Stablecoin Regulation under the Genius Act in July, the stablecoin market has been surging.
Data from DeFiLlama shows that the market capitalization of stablecoins is nearing $300 billion, an increase of over $90 billion since the beginning of the year.
The overall growth of stablecoins aligns with the rising demand for yield-bearing stablecoins. Ethena's USDe and Sky's USDS have performed strongly, with USDe's supply increasing by 70% since the signing of the Genius Act on July 18, and USDS expanding by 23%.
In August, Coinbase relaunched its stablecoin guidance fund to inject liquidity into DeFi platforms including Aave and Morpho for USDC—though the exchange did not disclose the size of the fund.
A report shared by Binance Research with Cointelegraph in September noted that as stablecoin adoption accelerates, "DeFi lending protocols are increasingly capable of facilitating institutional participation."
The DeFi lending market expanded by over 70% year-to-date in September, with institutional demand seen as a key driver.
The shift towards yield-bearing stablecoins has been described as "Stablecoin 2.0." While "first-generation" tokens like Tether's USDt focus on digitizing the dollar and putting it on-chain, "second-generation" stablecoins seek to create new utility by generating yields while providing liquidity.
Related: Stablecoin giant Tether seeks a $500 billion valuation—what internal and external challenges lie beneath its expansion ambitions?
Original article: “Spark Integrates PayPal USD (PYUSD) into Its Stablecoin Lending Market”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
