Catenaa, Tuesday, December 23, 2025- PayPal has launched a PYUSD Savings Vault on decentralized lending platform Spark, offering users the ability to earn a 4.25% APY on their stablecoin holdings, the company announced Monday.
The vault’s yield is anchored to the Sky Savings Rate, funded by revenue generated from Sky Protocol’s overcollateralized loans, real-world asset investments, and liquidity provision in its Spark subDAO.
PYUSD was integrated into SparkLend in September, allowing users to supply and borrow the stablecoin, with the companies aiming to grow deposits to $1 billion.
Current figures show about $150 million PYUSD supplied and $67 million borrowed.
The Savings Vault is part of Spark’s Savings V2 product line and deploys 90% of deposits through the Spark Liquidity Layer into yield-generating strategies, with 10% reserved for instant withdrawals.
Depositors receive spPYUSD “accumulative tokens” representing earned interest. Current allocation includes 57% stablecoins, 15.7% onchain crypto lending, 10.2% AAA corporate debt, 10.1% OTC crypto lending, and 5.3% Treasurys.
Spark, launched in 2024, provides DeFi lending and liquidity products including SparkLend, an Aave v3 fork for overcollateralized stablecoin loans.
PYUSD, issued through a partnership with Paxos in 2023, now has a $3.8 billion market capitalization and is the largest dollar-backed stablecoin under federal regulatory oversight after Paxos received an OCC banking charter last week.
The new vault is designed to expand PYUSD deposits on Spark while offering competitive yields comparable to other major stablecoins such as USDC, USDT, and Spark’s native USDS token.
