Hassan Maishera
TL;DR
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PayPal has launched PYUSDx with M0 and MoonPay, allowing businesses to issue custom stablecoins backed by PYUSD.
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Saturn, Concrete, and Cap are among the first adopters, bringing more than $100 million in processed volume to the platform.
Payments giant PayPal has expanded its blockchain strategy with the launch of PYUSDx, a platform that allows businesses to create custom stablecoins backed by PayPal USD.
Developed in partnership with stablecoin infrastructure provider M0 and cryptocurrency payments company MoonPay, PYUSDx gives companies the technology required to issue branded, fiat-pegged digital tokens.
PayPal and its partners initially previewed the platform in February. It is now going live with stablecoins from crypto-native companies Saturn, Concrete and Cap, which have collectively processed more than $100 million in volume.
Businesses Can Launch PYUSD-Backed Tokens
PYUSDx is designed to remove the technical and regulatory complexity involved in developing stablecoins.
Tokens launched through the platform are backed by PayPal’s PYUSD stablecoin, which provides the underlying reserves. MoonPay Digital Assets Ltd. is responsible for issuing the tokens.
The platform combines M0’s universal stablecoin and digital-token infrastructure with MoonPay’s issuance and distribution capabilities. USD.AI and Fairblock are among the other companies planning to introduce stablecoins through PYUSDx.
M0 CEO Luca Prosperi said growing institutional participation is creating a more fragmented stablecoin ecosystem. He added that many traditional financial companies lack experience working directly with developers, creating demand for an intermediary infrastructure layer.
PayPal has increased its focus on PYUSD as traditional finance and payment companies move more services onto blockchain networks.
Its established payments ecosystem, including Venmo, could help the company introduce stablecoins to a broad mainstream audience. PayPal was also one of the earliest major payment institutions to offer cryptocurrency buying and selling, launching the service in 2020.
Working with infrastructure specialists such as M0 and MoonPay allows PayPal to expand its blockchain products without developing every component internally.
Stablecoin Competition Intensifies
The custom stablecoin platform arrives as competition grows beyond market leaders Tether and Circle.
Payment companies are increasingly treating stablecoins as a strategic part of their businesses. Stripe has pursued an aggressive expansion strategy through products and acquisitions, including the stablecoin platform Bridge.
M0 also works with Bridge and regulated crypto custodian Anchorage, placing it at the center of the growing market for institutional stablecoin infrastructure.
By enabling companies to launch custom tokens backed by PYUSD, PayPal is positioning its stablecoin as a foundation for a broader network of branded digital currencies.
