PYUSDx launches publicly with $100M AUM

PayPal’s PYUSDx platform launched publicly in September, enabling companies to issue dollar-pegged tokens backed by PYUSD. MoonPay Digital Assets reported roughly $100 million in assets under management on the platform’s first day of public operation.

PYUSDx lets firms create tokens that carry their own names, rules and uses while reserves are held in PYUSD, the PayPal-backed stablecoin designed to maintain a $1 peg. PayPal first announced the initiative in February with MoonPay and M0; the September rollout opened the platform to third-party projects.

MoonPay Digital Assets operates PYUSDx and uses technology from M0. Tokens created on the platform are issued by MoonPay Digital Assets, not by PayPal or Paxos. Paxos is identified as the issuer of the core PYUSD that provides the backing reserves.

Early adopters on PYUSDx include Saturn, Concrete and Cap. Saturn launched USDat, Concrete issued concUSD for its investment services, and Cap moved part of its cUSD offering onto the platform.

The platform supports mainnet and layer-2 environments, including Ethereum, Arbitrum and Monad. Built-in conversion tools let participants swap among tokens issued on PYUSDx without each project having to set up separate liquidity pools.

Projects using PYUSDx are focused on lending, investment products and other on-chain financial services rather than everyday retail payments. At present, PYUSDx tokens cannot be held in, sent from, or received by PayPal and Venmo customer accounts because of regulatory constraints. Availability and functionality may differ by issuer and by jurisdiction.

Because PYUSD serves as the backing asset, tokens issued on PYUSDx are backed by PYUSD reserves. Firms issuing on the platform rely on PYUSD-based rails and MoonPay’s infrastructure for reserve management and issuance.

The September public launch is the platform’s first commercial use with live projects and the reported $100 million in assets under management on day one.