TL;DR:
PayPal, alongside MoonPay and stablecoin platform M0, announced the launch of PYUSDx, a tokenization and issuance framework that allows developers to create application-specific stablecoins backed by PayPal USD (PYUSD). Its commercial deployment is scheduled for next month.
PYUSDx is not a PayPal product nor a direct extension of PYUSD. It is an issuance framework operated by MoonPay Digital Assets Limited that will allow third parties to launch their own dollar-pegged tokens, using as reserve the stablecoin issued by Paxos Trust Company, a federally regulated national bank association.
The central proposition of PYUSDx is reducing the technical and operational barriers that have historically made launching custom stablecoins difficult. According to the joint announcement, the platform allows projects to go from development to launch in days, not months. Key features include multichain compatibility within M0’s ecosystem, reserve transparency through on-chain reporting, and the ability to create custom-branded tokens for specific ecosystems or protocols.
“Developers want to build differentiated experiences, but they shouldn’t have to rebuild reliable monetary infrastructure from scratch,” said May Zabaneh, Senior Vice President and General Manager of Crypto at PayPal.
Ivan Soto-Wright, CEO and co-founder of MoonPay, noted that the initiative strengthens the group’s issuance and distribution capabilities to make PYUSD more accessible. For his part, Luca Prosperi, CEO of M0, argued that eventually every fintech developer will turn to solutions of this kind.
The first project is already underway: USD.ai, a DeFi protocol that issues the USDai and sUSDai tokens, will use PYUSDx to launch a stablecoin specifically oriented toward artificial intelligence infrastructure.
Competition in the stablecoin market continues to grow. The number of new stablecoins with a supply exceeding $10 million grew by 89% during 2025. Meta, according to reports, is also evaluating incorporating stablecoin payments across Facebook, Instagram, and WhatsApp.
PYUSD is currently the sixth-largest stablecoin by market capitalization, with 4.2 billion coins in circulation, according to CoinGecko data.
