PayPal has extended its stablecoin work with a new developer platform called PYUSDx. The company built it with M0, a firm that specializes in fiat-pegged tokens, and crypto payments company MoonPay. The idea is simple: businesses can issue their own stablecoins backed by PayPal USD, the company’s dollar token. PayPal first teased the project in February. Now it is live.
What PYUSDx does
PYUSDx gives companies infrastructure to create custom stablecoins without building everything from scratch. The tokens are issued by MoonPay Digital Assets Ltd. The setup combines M0’s token technology with MoonPay’s issuance and distribution tools. That matters because stablecoin issuance is not just about minting tokens. It also involves compliance, custody, liquidity, and developer support. M0 says it tries to hide much of that complexity so clients can focus on their own products.
Competition is getting crowded
The stablecoin market has long been dominated by Tether and Circle Internet. But as traditional finance moves onchain, payments companies want a stronger position. Stripe has been especially active, and its crypto moves have raised the pressure on rivals. PayPal is not new to crypto. It began offering crypto services in 2020, according to CoinDesk, making it the first payments institution to do so. Now it is trying to stay relevant by partnering with crypto specialists instead of going alone.
Early issuers and reach
Several crypto native firms are already using the platform. Saturn, Concrete, and Cap are issuing tokens, and they bring more than $100 million in processed volume, the companies said. USD.AI and Fairblock are also planning stablecoins on PYUSDx. Luca Prosperi, CEO of M0, said PayPal has a rare path to mainstream users because of Venmo’s large base. He also warned that more financial institutions entering the sector could create fragmentation. Many banks and fintechs, he said, do not know how to work with developers. M0 aims to sit in the middle and make integrations easier.
PayPal’s move shows how stablecoins are shifting from a niche crypto product to a base layer for payments. The company still faces tough competition. But its brand, Venmo’s reach, and its early crypto experience give it a serious seat at the table. Whether PYUSDx becomes a major standard is less clear. For now, PayPal is betting that other firms will want to build on its rails.
