PayPal Partners Launch Platform for Custom Stablecoins

PayPal and partners M0 and MoonPay launched PYUSDx on September 9th, a platform for businesses to issue their own custom stablecoins. The platform allows companies to create branded stablecoins backed by PayPal's stablecoin, PYUSD, without the need for reserve custody or redemption mechanisms.

At launch, three companies, Saturn, Concrete, and Cap, have adopted the platform with combined processing volume exceeding $100 million (approximately ¥15 billion). Tokens issued on PYUSDx are not products of PayPal or Paxos and cannot be used within the PayPal or Venmo apps.

The two-tier structure of PYUSDx leaves open regulatory questions. While the lower tier, PYUSD, is backed by cash and U.S. Treasuries under federally regulated Paxos, the upper tier, PYUSDx tokens, are issued using another stablecoin as backing, which is not explicitly addressed in the GENIUS Act.