According to the materials of the site - By BH NEWS
PayPal has officially merged with the DeFi platform Spark to significantly increase the liquidity of its stablecoin PayPal USD (PYUSD). The goal of this alliance is to increase the volume of deposits on the blockchain from the current 100 million dollars to 1 billion dollars, which is the target for the coming weeks. The strategic collaboration aligns with the growing dynamics of stablecoins and DeFi markets, ultimately opening new financial opportunities for users.
The Paxos PYUSD, pegged to the US dollar, will be featured on the Spark lending platform known as SparkLend. This feature will allow users to borrow and take out PYUSD loans thanks to Spark's impressive stablecoin reserve of 8 billion dollars. Spark is distinguished by its focus on stable and predictable liquidity at fixed borrowing rates, avoiding the unpredictable fluctuations characteristic of more traditional schemes requiring high levels of market maker incentives.
The partnership coincided with the rise of the stablecoin market, where global supply increased by approximately 30 billion dollars in three months, reaching 263 billion dollars. Daily transaction volume with stablecoins sharply exceeded 100 billion dollars, indicating an expanding user base interested in these financial solutions. This collaboration strengthens the growing influence of stablecoins in the market.
Sam Macpherson, CEO of Phoenix Labs and one of the authors of Spark, highlighted the strategic advantages of the collaboration.
"Predictable access to deep liquidity allows stablecoins like PYUSD to scale rapidly," he noted.
His observation provides fintech companies with an example of using DeFi frameworks to expand initiatives related to stablecoins.
Recently, Spark also successfully provided Coinbase with bitcoin-backed loans worth 630 million dollars, further confirming its potential as a source of liquidity in the DeFi space.
David Weber, head of the PYUSD ecosystem at PayPal, emphasized the crucial role of platforms like Spark in the growth of PYUSD.
"With the total value of DeFi approaching 150 billion dollars, platforms like Spark play a key role in the development of PYUSD as a cornerstone of DeFi with high liquidity," he noted.
This partnership demonstrates how fintech companies are increasingly integrating into decentralized financial ecosystems, fostering the development of large projects related to stablecoins. The integration of stablecoins like PYUSD into DeFi platforms enhances market predictability and user trust through guaranteed liquidity and stable costs.
Anticipating further collaboration between traditional financial organizations and DeFi platforms, the partnership between PayPal and Spark is a key example of how financial technologies can combine with decentralized systems to provide advanced market solutions.
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