PayPal has launched PYUSDx, a stablecoin issuance platform designed to allow businesses to create custom digital currencies backed by PayPal USD (PYUSD), expanding the payments company’s efforts to build infrastructure around dollar-denominated digital assets.
The US-based payments company developed PYUSDx in partnership with M0, a provider of infrastructure for fiat-pegged tokens, and MoonPay, a crypto payments company. The platform was initially announced in February 2026 and has now entered live operation, according to the companies.
Platform Targets Business Stablecoin Issuance
PYUSDx is designed to give businesses a way to issue custom stablecoins backed by PayPal USD, extending PYUSD beyond a token held and used directly by PayPal customers and into an infrastructure layer for other digital-asset projects.
The platform combines M0’s stablecoin and token infrastructure with MoonPay’s capabilities for issuance and distribution. Tokens created through PYUSDx are managed through MoonPay Digital Assets Ltd., providing participating businesses with infrastructure for bringing their stablecoins into operation.
At launch, PYUSDx is supporting stablecoins issued by three crypto-focused companies: Saturn, Concrete and Cap. The companies have collectively processed more than $100 million in volume through the platform, according to the companies involved. USD.AI and Fairblock are also introducing stablecoins through PYUSDx, broadening the initial group of businesses using the system.
The model gives companies access to infrastructure linked to PYUSD rather than requiring each issuer to establish an independent stablecoin framework from the ground up. It also places PayPal’s dollar-backed asset at the center of a broader ecosystem in which other businesses can build specialized digital currencies.
PYUSD Expands Across Global Markets
PayPal’s move comes as PYUSD continues to expand geographically. The stablecoin is now available to users across 70 markets spanning Europe, Asia-Pacific, North America and Latin America.
PayPal is consequently pursuing two related strategies for PYUSD. The company is expanding the stablecoin as a currency that its own customers can hold, transfer and spend, while also developing infrastructure that enables other businesses to build stablecoins backed by the same underlying asset.
The approach could give PayPal a broader role in stablecoin activity by connecting its consumer payments network with infrastructure intended for developers and businesses. It also reflects the company’s continued expansion into digital assets following its introduction of cryptocurrency buying and selling services in 2020.
Looking forward to seeing how developers build upon PYUSDx. https://t.co/mR4jTrBPkL
— PayPal (@PayPal) September 10, 2026
Competition Intensifies in Stablecoin Infrastructure
The PYUSDx launch places PayPal among a growing number of payments and financial companies developing infrastructure for stablecoins as financial activity increasingly moves onto blockchain networks.
PYUSD is designed for peace of mind.
🔹 Fully backed by US dollar reserves and cash equivalents
🔹 Redeemable 1:1 for USD on PayPal, with zero fees
🔹 Regulated and available in 70 marketsPYUSD — a stablecoin you can count on. pic.twitter.com/G8iOmh5T5i
— PayPal (@PayPal) August 25, 2026
Tether and Circle Internet have established major positions in the stablecoin market, while other payments companies, including Stripe, have expanded their involvement in stablecoin infrastructure. The increasing participation of established financial and payments businesses has created a more competitive market for the technology used to issue, distribute and integrate dollar-backed digital currencies.
M0 CEO Luca Prosperi said PayPal’s reach, including through its Venmo platform, could support wider adoption of PYUSD. He also pointed to fragmentation among stablecoin projects as more financial institutions enter the sector.
According to Prosperi, financial institutions increasingly need ways to work directly with developers, but many do not yet have established infrastructure for doing so. M0’s technology is intended to address that challenge by providing a common infrastructure layer that can simplify the integration of new stablecoin projects.
For developers and businesses, PYUSDx could reduce the infrastructure complexity involved in launching stablecoins while giving PayPal an additional channel for expanding the use of PYUSD across payments and digital-asset applications.
The launch therefore represents a further step in PayPal‘s broader stablecoin strategy, combining its established payments network with infrastructure aimed at developers, businesses and emerging blockchain-based financial services.