MoonPay, PayPal and M0 announce PYUSDx.
The three companies have partnered on a new model of white-label stablecoin issuance and tokenization services. MoonPay will act as the issuer, with M0 supporting on the technical implementation for entities wishing to build application that employ PYUSDx as reserves.
CEO at M0 Luca Prosperi expressed:
Developers of crypto applications have been early adopters of custom stablecoin-backed technology, but they still don’t have a trusted platform they can use to quickly bootstrap solutions. PYUSDx will allow developers to iterate much more quickly within an interoperable solution and with built-in liquidity. We believe every fintech developer will eventually utilize a solution like PYUSDx.”
This comes at a time when the stablecoin issuance side of the business model is becoming more commoditised and network effects are effectively seen just as important.
Rather than starting another new stablecoin altogether, this framework focuses on PayPal’s existing PYUSD as a brand (notwithstanding the declining performance of the company and potential acquisition).
It remains to be seen if entities will wish to utilise such a model in niche applications. The example provided is USD(.)ai, which is somewhat strange as it already uses GPUs as collateral.
Also, it is not fully clear how compliant this may be altogether with the upcoming enforcement of the GENIUS Act’s permitted reserve types for payment stablecoins.
