PayPal, MoonPay and M0 launch PYUSDx to let devs issue app-specific stablecoins

Payment giant PayPal is expanding access to its stablecoin through a new platform it says will allow devleopers to create their own US dollar-pegged tokens backed by PayPal USD.

PayPal, MoonPay and stablecoin platform M0 on Friday announced PYUSDx, a product aimed at helping developers launch PayPal USD ($PYUSD)-backed stablecoins for use within applications, or tokens designed for use inside a particular app, platform or ecosystem, according to a joint announcement shared with Cointelegraph.

The companies said the rollout is planned for next month.

“The next phase of stablecoin adoption is happening at the application layer. Developers want to build differentiated experiences, but they shouldn’t have to rebuild trusted monetary infrastructure from scratch,” said May Zabaneh, PayPal’s head of crypto.

The launch comes as competition intensifies in the stablecoin market, with companies including Meta reportedly planning stablecoin-based payments across its suite of apps including Facebook, Instagram and WhatsApp.

PYUSDx combines M0’s universal stablecoin and MoonPay platform

Launched in August 2023, PayPal USD is a US dollar-pegged stablecoin issued by Paxos Trust Company, a federally regulated national banking association.

PYUSDx is separate from $PYUSD and is described as a tokenization and issuance framework offered by MoonPay Digital Assets, the announcement said.

PayPal USD ($PYUSD) is the sixth-largest stablecoin by market cap at $4.2 billion. Source: CoinGecko

The companies said PYUSDx combines M0’s universal stablecoin and digital token platform with MoonPay Group’s infrastructure to simplify the launch of US dollar-backed stablecoins by reducing technical and operational burdens.

It also features fast launch speed, cross-chain compatibility, flexible economics, reserve transparency and the ability to create branded stablecoins.

“We’re excited to see MoonPay and M0 use PYUSDx to help bring new, application-specific stablecoins to market, anchored in a regulated, trusted foundation,” PayPal’s Zabaneh said.

Related: Stripe considers acquiring some or all of PayPal: Report

USD.ai, a decentralized finance protocol that issues stablecoins including USDai and yield-bearing sUSDai, is the first developer building on PYUSDx, using the platform to support an application-specific stablecoin for AI infrastructure.

PYUSDx tokens are separate from PayPal USD and cannot be used, sent or stored in PayPal or Venmo accounts, the announcement noted.

The launch of PYUSDx comes as PayPal continues expanding real-world use cases for its stablecoin. In late 2025, video-sharing giant YouTube reportedly enabled US-based creators to accept payouts in $PYUSD, highlighting the growing adoption of the digital dollar beyond traditional finance.

Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns