PayPal Lets Other Companies Launch Their Own Stablecoins, Backed by PYUSD

SAN JOSE, Calif. — PayPal, together with token infrastructure firm M0 and crypto payments company MoonPay, has launched PYUSDx, a developer platform that lets other businesses issue their own custom, branded stablecoins collateralized by PayPal USD (PYUSD). Rather than adopting PYUSD itself, a company using PYUSDx can configure a token under its own name — setting parameters like access controls, reward distribution and collateral policy — without building token-issuance infrastructure from scratch.

The structure separates the base stablecoin from the custom tokens built on top of it. Paxos Trust Company continues to issue the underlying PYUSD, unchanged from its existing role. MoonPay Digital Assets Limited is the legal issuer of the custom tokens created through PYUSDx and holds the PYUSD reserves collateralizing them, while M0 provides the underlying issuance infrastructure. PayPal has been explicit that tokens minted on PYUSDx are not PayPal or Paxos products themselves, and cannot be sent, received, or used inside the PayPal or Venmo apps — they are a separate category of asset that merely uses PYUSD as backing.

Three companies — Saturn, Concrete and Cap — went live with the platform at launch and have processed more than $100 million in combined volume so far, according to the companies. PayPal has said two additional partners, USD.AI and Fairblock, are expected to join the platform, though neither has launched on it yet.

The move positions PayPal as infrastructure for other companies' stablecoin ambitions rather than only a stablecoin issuer competing directly for end-user adoption — a different strategic lane from rivals pushing their own branded tokens directly to consumers. Whether a business chooses to issue a custom PYUSDx token instead of adopting an existing stablecoin outright will likely depend on how much a company values controlling its own token's branding and reward mechanics versus the simplicity of building on a stablecoin that already has established liquidity and exchange listings.

The launch adds PayPal to a growing list of established payments and financial companies building stablecoin issuance tooling for third parties rather than simply issuing their own token and stopping there, a pattern this publication has also tracked among banks experimenting with stablecoin rails as backend infrastructure rather than consumer-facing products.