PayPal Launches Custom Token Issuance for Stablecoins
PayPal expands stablecoin rails with custom token issuance platform
PayPal is widening its blockchain-based stablecoin effort with a new developer platform that lets businesses issue their own stablecoins backed by PayPal USD (PYUSD), the company said Tuesday.
The platform, called PYUSDx, is built with fiat-pegged token specialist M0 and crypto payments firm MoonPay. PayPal first teased the initiative in February. The core pitch is infrastructure: companies can launch a custom token that uses PYUSD as the backing asset, rather than building stablecoin issuance, custody, and payment flows from scratch.
Alongside PYUSDx, PayPal is also expanding the reach of PYUSD itself. The company said it has extended its USD-backed stablecoin to nine additional blockchain networks through a partnership with interoperability protocol LayerZero, using LayerZero’s Stargate Hydra bridge system to support broader access across crypto platforms.
The multi-chain rollout includes a new token format called PYUSD0, described as a permissionless version of PayPal’s stablecoin that remains fully interchangeable with the original PYUSD. PayPal said PYUSD0 will operate across seven additional blockchains: Tron, Avalanche, Aptos, Abstract, Ink, Sei, and Stable.
The broader context is PayPal’s push to make PYUSD easier to integrate into payments and on-chain applications by increasing where it can move and settle. PayPal has framed its stablecoin work as a way to reduce friction in digital payments and connect traditional currency flows with blockchain networks, at a time when businesses are paying close attention to transaction costs and settlement speed.
- PYUSDx: a platform for businesses to issue custom stablecoins backed by PYUSD, built with M0 and MoonPay
- LayerZero integration: expands PYUSD’s availability across additional networks via Stargate Hydra
- PYUSD0: a permissionless, interchangeable version of PYUSD designed to operate on more chains
