PayPal, MoonPay and M0 Introduce PYUSDx for Application Specific Stablecoins

PayPal has partnered with MoonPay and M0 to launch PYUSDx a new framework designed to let developers issue their own US dollar pegged stablecoins backed by PYUSD. The rollout is expected next month.

PYUSDx enables app developers to create branded, application-specific tokens anchored to regulated reserves. Unlike PYUSD, which was launched in August 2023 and is issued by Paxos Trust Company, PYUSDx serves as a tokenization and issuance layer rather than a standalone consumer stablecoin.

Stablecoin Market Competition and Cross-Chain Features

The new platform combines M0’s universal stablecoin infrastructure with MoonPay’s digital asset rails to reduce technical complexity. Key features include cross-chain compatibility, transparent reserve structures, customizable token economics and rapid deployment capabilities.

PYUSD is currently the sixth largest stablecoin by market capitalization at approximately $4.2 billion, according to CoinGecko. However, PYUSDx tokens will operate independently and cannot be stored or transferred within PayPal or Venmo accounts.

The launch reflects intensifying competition in the stablecoin sector, as large technology and payments firms explore blockchain-based settlement solutions and app-level token integration.

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