PayPal Launches PYUSDx for Custom Stablecoins on Ethereum, Solana, Polygon

PayPal launched PYUSDx in early 2025, enabling developers globally to issue custom stablecoins for applications built on the PayPal USD (PYUSD) ecosystem, the company said. The platform integrates M0 universal stablecoin infrastructure with MoonPay payment rails and provides a modular issuance framework where teams can configure collateralization ratios, redemption mechanisms and compliance features, with native multichain support on Ethereum, Solana and Polygon. PayPal said PYUSDx embeds a regulatory compliance layer with KYC and AML protocols and transaction monitoring, adds brand integration tools for custom token design, and incorporates security measures including multisignature wallet requirements, real-time monitoring, regular third-party audits, insurance coverage for digital asset custody, and emergency pause and upgrade functions. The company highlighted potential use cases across ecommerce, gaming, financial services and social networks within the PYUSD ecosystem, noting alignment with FATF travel rule requirements, integration with national AML reporting systems, securities regulation considerations and consumer protection standards across multiple jurisdictions.