PayPal is set to enhance the liquidity of its stablecoin, PYUSD, by partnering with decentralized finance platform Spark. The collaboration aims to increase PYUSD deposits from $100 million to $1 billion in the coming weeks. This initiative allows users to deposit and borrow PYUSD, leveraging Spark's $8 billion stablecoin reserve pool to back liquidity. The integration with Spark provides a framework for sustainable stablecoin adoption, focusing on organic growth without relying on costly incentives. This move is part of PayPal's broader strategy to strengthen its position in the digital currency space by utilizing decentralized finance mechanisms.