PYUSDx Lets Companies Mint Custom PayPal-Backed Stablecoins

PayPal, M0 and MoonPay launched PYUSDx, a white-label platform for issuing custom PYUSD-backed stablecoins The custom tokens work only in external on-chain apps, never inside PayPal or Venmo Its four-tier issuance structure currently falls outside the GENIUS Act Three projects processed over $100 million in the platform’s first days PayPal went live with PYUSDx on September 9, 2026, together with blockchain infrastructure firm M0 and crypto payments company MoonPay, giving businesses a way to issue their own dollar-pegged tokens without assembling reserve management, smart contracts or compliance frameworks from scratch. The product is not a new consumer coin. It is a white-label toolkit that lets fintech teams and crypto-native builders spin up application-specific stablecoins, each one backed 1:1 by existing reserves of PayPal USD. Within its first days of operation the ecosystem moved past $100 million in combined transaction volume and assets under management across three live projects. PayPal stopped selling a coin and started renting out its reserves For two years PayPal pushed PYUSD at retail users while entrenched tokens dwarfed it in circulation. PYUSDx reframes that contest. Rather than competing coin against coin, PayPal now positions PYUSD as the reserve asset sitting underneath other companies’ stablecoins, which converts a consumer product into back-end plumbing for corporate digital money. May Zabaneh, senior vice president and general manager of crypto at PayPal, placed the shift at what she called the application layer, arguing that developers want to build differentiated experiences without rebuilding trusted monetary infrastructure themselves, and predicting that every fintech developer will eventually use a solution like PYUSDx. Luca Prosperi, co-founder and chief executive of M0, framed the same design from the builder side, saying the system is meant to “leave the product layer to developers.” A fintech that wants an on-chain dollar can define its own token rules while borrowing PayPal’s reserves and MoonPay’s issuance rails. According to MoonPay’s launch parameters, that cuts the path from concept to live deployment down to days instead of months. Four layers, four owners, one dollar of reserves PYUSDx stacks four distinct responsibilities, each owned by a different party. The issuer controls what the token looks like and how it behaves at the top of the stack, while the monetary base stays anchored to regulated reserves at the bottom. 1 Customization Developer / issuer Token name, ticker, branding, yield routing, freeze controls and compliance rules. 2 Technical engine M0 Tokenization and the universal digital token standard the branded coins run on. 3 Issuance & operations MoonPay Digital Assets Ltd Issues the tokens, holds the PYUSD reserves and provides real-time collateral transparency. 4 Monetary foundation PayPal & Paxos Trust PYUSD reserves backed 1:1 by Treasury bills, dollar deposits and cash equivalents.