PayPal has launched PYUSDx, an infrastructure platform that enables businesses and developers to create on-chain financial products and custom stablecoins fully backed by PYUSD. The platform allows users to customize token branding, rewards, compliance mechanisms, reserve composition and blockchain transfers. Three projects were fully operational at launch, with combined transaction volume exceeding $100 million.
Key Overview
- PayPal: PayPal Holdings (NasdaqGS: PYPL)
- Platform: PYUSDx
- Launch: September 9, 2026
- Purpose: Creation of custom stablecoins and on-chain financial products
- Backing: PYUSD
- Technical partner: M0
- Token issuance and distribution: MoonPay Digital Assets Limited
- Early platform activity: More than $100 million in combined transaction volume
- Stablecoin market capitalization: $291 billion as of September 10, 2026
- U.S. dollar-denominated stablecoins: $288 billion
PayPal Launches PYUSDx for Custom Stablecoins
PayPal has launched PYUSDx, a platform designed to enable businesses and developers to create on-chain financial products and custom stablecoins fully backed by PYUSD.
The initiative gives enterprises the ability to develop branded digital dollars while using PayPal’s existing stablecoin reserves and infrastructure. PayPal’s new platform is aimed at businesses seeking greater control over the design and functionality of their digital assets without having to build the underlying stablecoin infrastructure independently.
M0, a developer of tokenized-finance infrastructure, serves as PYUSDx’s technical partner, while fintech company MoonPay Digital Assets Limited handles token issuance and distribution.
The platform’s launch comes as PayPal moves further into programmable digital dollar infrastructure and the broader stablecoin ecosystem.
Businesses Can Customize Stablecoin Features
Through PYUSDx, developers can customize several characteristics of the tokens they create.
These include the name, ticker, and branding of the token, as well as reward distribution mechanisms. Developers can also incorporate compliance features such as account freezes and customize reserve asset composition.
The platform also supports transfers across EVM-compatible blockchain networks.
Tokens issued through PYUSDx can be exchanged for PYUSD and USDC through built-in on-chain liquidity mechanisms. According to the information provided, this feature is intended to reduce the risk of newly created assets becoming isolated within separate ecosystems.
PYUSD Provides the Underlying Stablecoin Infrastructure
PayPal’s PYUSD stablecoin launched in 2023. The dollar-denominated asset is issued by Paxos Trust Company, N.A.
Its reserves are backed by dollar deposits, U.S. Treasury securities and similar cash-equivalent instruments.
PYUSD provides the underlying asset for tokens created through the PYUSDx platform, allowing businesses to develop customized stablecoins while relying on PYUSD as their backing.
PYUSDx Already Processes More Than $100 Million
At its public launch on September 9, three projects were fully operational on PYUSDx. Their combined transaction volume on the platform had already exceeded $100 million, indicating early commercial activity.
The first projects using PYUSDx include Saturn, Concrete, and Cap.
Saturn, a structured-finance protocol, issued USDat through PYUSDx for settlement and liquidity within its BTC-backed digital lending protocol. About $65 million in USDat is currently in circulation.
Concrete uses PYUSDx to issue concUSD, a dollar-denominated asset designed for its on-chain vault infrastructure. The protocol automatically allocates, rebalances and reinvests funds across DeFi platforms, including Morpho.
Cap, an on-chain lending platform, migrated part of its cUSD settlement stablecoins to PYUSDx. The move is intended to replace volatile DeFi liquidity with PYUSD-linked collateral. About $92 million in cUSD is in circulation.
More Stablecoins Preparing to Join PYUSDx
Two additional projects are preparing to use PYUSDx infrastructure.
USD.AI, whose USDai stablecoin is already in circulation, is preparing to migrate the asset to PYUSDx.
Meanwhile, Fairblock is developing Confidential USD (CUSD) on the platform. The stablecoin is designed to support both confidential and public transfers while maintaining institutional compliance requirements.
The planned additions would expand the number of projects using PayPal’s infrastructure beyond the three that were operational at launch.
Stablecoin Market Reaches $291 Billion
The PYUSDx launch comes amid continued expansion of the broader stablecoin market.
As of September 10, 2026, stablecoin market capitalization stood at $291 billion, with $288 billion attributable to U.S. dollar-denominated tokens.
Total stablecoin transaction volume reached $1.79 trillion in June 2026, highlighting the scale of activity taking place across the sector.
Against this backdrop, PayPal’s approach focuses on infrastructure rather than simply competing for stablecoin ownership. By allowing partners to create their own branded stablecoins backed by PYUSD, the company is positioning itself within the infrastructure layer of the stablecoin ecosystem.
PayPal’s Strategic Stablecoin Push
The introduction of PYUSDx represents a further expansion of PayPal’s cryptocurrency strategy.
Rather than requiring businesses to create independent stablecoin infrastructure, the platform gives them the ability to customize digital assets while using PYUSD as the underlying backing.
This model could allow PayPal to play a broader role across the stablecoin ecosystem as businesses seek programmable digital dollar solutions.
The platform’s early transaction activity also provides an initial indication of commercial interest, with more than $100 million in combined transactions processed by the three projects operational at launch.
Outlook
PayPal’s PYUSDx launch places the company deeper within the growing stablecoin infrastructure market by enabling businesses and developers to create customized, PYUSD-backed digital assets.
With three projects already operational and combined transaction volume exceeding $100 million, the platform has demonstrated early commercial activity. The planned migration of USD.AI and development of Fairblock’s CUSD could further expand the range of stablecoins using PYUSDx infrastructure.
The broader stablecoin market, which stood at $291 billion in capitalization as of September 10, provides a significant environment for PayPal’s infrastructure-focused strategy. The company’s ability to support branded stablecoins, on-chain liquidity, compliance mechanisms and transfers across EVM-compatible networks will be important areas to watch as PYUSDx develops.
FAQs
1. What is PayPal’s PYUSDx platform?
PYUSDx is a platform launched by PayPal that allows businesses and developers to create on-chain financial products and custom stablecoins fully backed by PYUSD.
2. How much transaction volume has PYUSDx processed?
The three projects fully operational at the September 9 public launch had combined transaction volume exceeding $100 million.
3. Which projects are currently using PYUSDx?
The first projects are Saturn, Concrete and Cap. Saturn issued USDat, Concrete issues concUSD, and Cap migrated part of its cUSD settlement stablecoins to the platform.
4. How large was the stablecoin market in September 2026?
As of September 10, 2026, the stablecoin market capitalization stood at $291 billion, including $288 billion in U.S. dollar-denominated tokens.
Sources: Cryptonews.net, Bitget, Forbes
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