PYUSDx allows businesses and developers to create their own branded onchain tokens while using PayPal USD, or PYUSD, as the economic foundation. M0 built the platform’s programmable infrastructure, while MoonPay Digital Assets Limited handles issuance and reserve operations associated with the framework.
M0 said on September 9 that Saturn, Concrete and Cap were live on PYUSDx, with their activity accounting for more than $100 million in processed volume. Two additional projects, USD. AI and Fairblock, are expected to join the platform, widening the range of applications built around PYUSD.
The arrangement represents a shift in PayPal’s stablecoin strategy from supplying a digital dollar primarily for payments and transfers towards providing infrastructure that other developers can customise. PYUSD itself is issued by Paxos Trust Company, a federally regulated national banking association in the United States.
PayPal says PYUSD remains redeemable one-for-one for US dollars and is backed by dollar deposits, US Treasuries and similar cash equivalents. The token operates across several blockchain networks, giving the PYUSDx structure an existing reserve-backed asset on which developers can build customised products.
PYUSDx is separate from PYUSD. Tokens created through the platform are not PayPal USD and are not issued by PayPal or Paxos. MoonPay has said PYUSDx tokens are issued by MoonPay Digital Assets Limited, with licensing and regulatory treatment depending on the jurisdiction and implementation.
Developers can choose a token’s name and symbol, determine how rewards are distributed, configure administrative and compliance controls and set aspects of cross-chain behaviour. M0’s documentation says custom tokens are backed one-for-one by PYUSDx, a shared base token that enables conversions between products built on the system.
The platform also supplies native liquidity links to PYUSD and USDC. M0 says this means developers do not need to establish an entirely separate liquidity market for each customised token, addressing one of the practical hurdles facing companies seeking to issue specialised digital dollars.
M0’s architecture includes controls for freezing or pausing accounts, configurable reward routing and support for bridging across compatible blockchain networks. The company describes the system as modular, allowing developers to select product-level features without constructing reserve, liquidity and token infrastructure independently.
MoonPay provides the issuance and distribution layer. Its stablecoin issuance service incorporates payment ramps, commerce tools, trading access and treasury infrastructure, although availability varies by jurisdiction. MoonPay says its issuance product is not available in New York, Canada, the European Economic Area and certain other markets.
The PYUSDx initiative was initially unveiled by MoonPay, M0 and PayPal in February as infrastructure for application-specific stablecoins backed by PYUSD. At that stage, USD. AI was identified as the first developer building on the framework, with a token intended for use around artificial-intelligence infrastructure.
PayPal said at the February announcement that application-level development was becoming the next stage of stablecoin adoption. May Zabaneh, PayPal’s senior vice-president and general manager of crypto, said developers wanted differentiated products without having to rebuild monetary infrastructure from the ground up.
The model gives PayPal another route to increase the utility and circulation of PYUSD without directly issuing every specialised token constructed around it. For developers, it offers access to an established dollar-linked asset while leaving product branding and selected operational rules under their control.
Stablecoins have become an increasingly important settlement asset across cryptocurrency markets and are also being tested for payments, treasury management and cross-border transfers. M0 estimated stablecoin circulation at about $303 billion and monthly transfer volume at $7.2 trillion as of September, figures that underline the scale of the market targeted by programmable issuance platforms.
PYUSDx uses an upgradeable, non-rebasing ERC-20 base token with six decimal places, according to M0’s technical documentation. Developers deploy custom wrappers through M0’s infrastructure, with users able to convert between the shared base and individual tokens at a one-to-one ratio.
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