PayPal, M0, and MoonPay launched PYUSDx, a platform that will allow companies to issue proprietary stablecoins and other on-chain products backed by PayPal USD (PYUSD). Transaction volume on the platform exceeded $100 million since launch.
International payments company PayPal announced the launch of PYUSDx, a platform for creating on-chain financial products and custom stablecoins fully backed by PYUSD. M0, a developer of tokenized-finance infrastructure, serves as the project’s technical partner. Fintech company MoonPay Digital Assets Limited handles token issuance and distribution.
Using PYUSDx, developers can customize token parameters, including:
- Name, ticker, and branding
- Reward distribution
- Account freezes and other compliance mechanisms
- Reserve asset composition
- Transfers across EVM-compatible blockchain networks
Tokens issued through PYUSDx can be exchanged for PYUSD and USDC through built-in on-chain liquidity mechanisms. This is intended to reduce the risk that new assets become isolated within separate ecosystems.
PYUSD, a dollar-denominated stablecoin, launched in 2023. Paxos Trust Company, N.A. issues the asset. Its reserves are backed by dollar deposits, U.S. Treasury securities, and similar cash-equivalent instruments.
As of its public launch on September 9, 3 projects were fully operational on PYUSDx. Their combined transaction volume on the platform exceeded $100 million. The first PYUSDx projects include:
- Saturn, a structured-finance protocol, issued USDat through the platform for settlement and liquidity within its BTC-backed digital lending protocol. About $65 million in USDat is in circulation.
- Concrete uses PYUSDx to issue concUSD, a dollar-denominated asset for its on-chain vault infrastructure. The protocol automatically allocates, rebalances, and reinvests funds across DeFi platforms, including Morpho.
- Cap, an on-chain lending platform, migrated part of its cUSD settlement stablecoins to PYUSDx to replace volatile DeFi liquidity with PYUSD-linked collateral. About $92 million in cUSD is in circulation.
Two more projects are preparing to use PYUSDx infrastructure. USD.AI, whose USDai stablecoin is already in circulation, is preparing to migrate it to PYUSDx. Fairblock is developing Confidential USD (CUSD) on the platform, a stablecoin designed to support confidential and public transfers while maintaining institutional compliance requirements.
As of September 10, 2026, the stablecoin market capitalization stood at $291 billion, with $288 billion attributable to U.S. dollar-denominated tokens. Total stablecoin transaction volume reached $1.79 trillion in June 2026.
