Payments giant PayPal has launched the PYUSD Savings Vault on DeFi lending platform Spark protocol to boost adoption of its dollar‑pegged stablecoin.

The vault integrates PYUSD directly with SparkLend, with supply and borrowing backed by Spark’s $8 billion stablecoin reserves.

According to the documentation, 90 % of deposits are routed through the Spark Liquidity Layer into yield‑generating strategies, while the remaining 10 % remains in the contract to provide liquidity for instant withdrawals.

Interest is earned in the form of spPYUSD, an accrual token issued to depositors, with yields anchored to the Sky Savings Rate of around 4.25 % APY.

Around $146 million PYUSD has been supplied to the vault so far, earning around 2.11 % APY, with $67 million PYUSD borrowed against a 5.25 % APY.

The news comes as PayPal applied for approval to form “PayPal Bank” and extend loans to small U.S. businesses.