PayPal crypto strategy expands as PYUSDx goes live with $100M
PYUSDx lets businesses launch customised stablecoins backed by PayPal USD, although the resulting tokens are issued and operated by MoonPay.
Businesses are now launching tokens that are backed by PYUSD to their customers, allowing PayPal to branch out of its standard PayPal Digital Dollar currency.
PYUSDX moved into public launch with projects such as Saturn, Concrete, and Pay Cap, making use of the platform, and MoonPay claims it has now reached a $100 million AUM upon launch day, due to these projects.
PYUSD becomes the foundation for other tokens
PYUSDx enables firms to issue stablecoins and attach to the currency their names, rules, and use, and they are backed by PYUSD, which is designed to remain at $1.
By offering this level of control without requiring them to build out the underlying payment and reserve system, companies would be able to issue their own tokenized dollars, backed by PYUSD-based rails, rather than relying on building out their own system.
PayPal first announced PYUSDx with MoonPay and M0 in February, and its September launch means that it has now entered public use with companies.
Saturn uses the infrastructure for USDat, Concrete has launched concUSD for its investment services, while Cap has moved part of its cUSD system onto the platform.
They mainly target lending, investments, and other onchain financial services instead of everyday retail payments.
PYUSDx comes with an important distinction
Even with the PayPal branding, PYUSDx is still run by MoonPay Digital Assets, and it makes use of technology from M0.
Tokens that are created through the platform are issued by MoonPay Digital Assets, not by PayPal or Paxos [the company behind PYUSD].
The stablecoin cannot also be held, sent, or received from PayPal and Venmo accounts at this time due to regulations. But these regulations depend on the company, token, and country, so availability may differ.
PYUSD is still central, as it is the asset backing these bespoke tokens, and this means that increased use of PYUSDx might lead to increased demand for PYUSD without every customer needing to hold PYUSD.
The platform supports Ethereum, Arbitrum, and Monad, while built-in conversion tools allow participants to change tokens without each project having to create a new liquidity pool.
Final Summary
- PYUSDx has entered public use with $100 million in reported assets under management.
- MoonPay issues the customized tokens with PayPal’s PYUSD as the backing.
