Payment company PayPal, together with MoonPay and stablecoin platform M0, announced PYUSDx, a tokenization and issuance framework that will let developers create app-specific, US dollar–pegged tokens anchored to PayPal USD (PYUSD). The product is aimed at simplifying the launch of branded, application-focused stablecoins that are 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, a federally regulated national banking association. PYUSDx itself is offered by MoonPay Digital Assets and combines M0’s universal stablecoin technology with MoonPay Group’s infrastructure to reduce the technical and operational burden on developers.
PYUSDx is designed to provide:
– Fast launch timelines
– Cross-chain compatibility
– Flexible economic models for app-specific use
– Reserve transparency
– The ability to create branded, application-specific stablecoins
PayPal’s head of crypto, May Zabaneh, said developers should be able to build differentiated experiences without rebuilding trusted monetary infrastructure from scratch. The announcement arrives as competition in the stablecoin space intensifies, with other major companies reportedly exploring or testing stablecoin-based payments across their apps.
USD.ai, a decentralized finance protocol known for issuing stablecoins such as USDai and yield-bearing sUSDai, is the first developer to build on PYUSDx, using the platform to support an application-specific stablecoin for AI infrastructure.
PYUSDx tokens are distinct 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 — for example, reports that YouTube enabled PYUSD payouts for U.S.-based creators in late 2025 — underscoring growing adoption of regulated digital dollars beyond traditional finance.
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