PayPal, MoonPay and stablecoin platform M0 have introduced PYUSDx, a tokenization and issuance framework that enables developers to create app-specific, US dollar–pegged tokens anchored to PayPal USD (PYUSD). The offering is intended to simplify launching branded, application-focused stablecoins backed by PayPal’s regulated digital dollar, with a rollout planned for next month.
PayPal USD, launched in August 2023, is issued by Paxos Trust Company under federal oversight. PYUSDx itself is provided by MoonPay Digital Assets and merges M0’s universal stablecoin technology with MoonPay Group’s infrastructure to lower the technical and operational burden on developers.
PYUSDx is designed to deliver:
– Faster launch timelines for app-branded tokens
– Cross-chain compatibility
– Flexible economic models tailored to application use cases
– Reserve transparency
– Tools to create and manage branded, application-specific stablecoins
PayPal’s head of crypto, May Zabaneh, said the goal is to let developers build differentiated experiences without having to rebuild trusted monetary infrastructure from scratch. The announcement comes as competition in the stablecoin space grows, with other major companies reportedly exploring or testing stablecoin payment features across their apps.
USD.ai, a DeFi protocol known for issuing stablecoins like USDai and yield-bearing sUSDai, is the first developer building on PYUSDx. USD.ai plans to use the platform to support an application-specific stablecoin for AI infrastructure.
Important distinctions: PYUSDx tokens are separate from PayPal USD and cannot be used, sent, or stored in PayPal or Venmo accounts. The launch follows other moves to expand real-world use of PYUSD—reportedly including YouTube enabling PYUSD payouts for U.S.-based creators in late 2025—highlighting increasing adoption of regulated digital dollars outside traditional finance.
This summary is based on original reporting by Cointelegraph; readers should verify details independently.