PayPal, in collaboration with M0 and MoonPay, has officially launched PYUSDx, allowing businesses to issue custom stablecoins backed by PayPal USD. Following a preview in February, it is now open for use.

The first batch of crypto-native companies, Saturn, Concrete, and Cap, have issued tokens, with announcements stating that the platform's transaction volume has exceeded $100 million. Saturn's USDat is used for settlement and liquidity, circulating around $65 million, with its staked version linked to Strategy preferred stock returns; Concrete has created ConcUSD as a treasury buffer, with a stablecoin strategy scale exceeding $800 million. USD.AI and Fairblock will also be integrated.

The legal structure separates PYUSD from PayPal USD: PayPal USD is still issued by Paxos Trust Company; the PYUSDx token is issued by MoonPay Digital Assets Limited and cannot be stored or withdrawn in PayPal or Venmo accounts, with regulatory classifications varying by jurisdiction. Technically, it overlays M0's universal stablecoin stack with MoonPay's issuance and distribution, emphasizing rapid launch, cross-chain capabilities, and reserve disclosures. May Zabaneh, head of PayPal's crypto business, stated that the next phase will focus on what businesses can do with stablecoins. M0 CEO Luca Prosperi noted that market fragmentation occurs after institutional entry, with the middle layer responsible for abstracting complexity.

Global stablecoin circulation has surpassed $300 billion, with monthly transaction volumes previously exceeding $7 trillion, at one point surpassing the U.S. ACH. PYUSD serves as the underlying reserve, lending branded dollars to application layer tokens, without directly assuming licenses for each new coin.

In market mechanics, this is wholesale reserve dollars: applications issue their own branded coins, with settlements still reverting to PYUSD. Beneficiaries are protocols needing their own settlement units and MoonPay's issuance fees; pressured parties are smaller issuers needing to build reserves and licenses, as well as larger circulating USDC and USDT shares on application layer white labels. Funds flow from application scenarios into PYUSD reserves, then return to users as liabilities of custom coins.

$100 million is the transaction volume for the first three companies, not an increment from PayPal's consumer network. Custom coins are not PayPal products, with redemption and compliance falling on MoonPay and each issuer.

Source: Public Information