Tom Kushner PayPal, MoonPay, and M0 unveil PYUSDx, a new platform empowering developers to create application-specific stablecoins backed by PayPal USD with cross-chain support and branded token capabilities.
PayPal and MoonPay Team Up to Launch PYUSDx for App Developers
In a move that could redefine how digital payments operate within decentralized ecosystems, PayPal and MoonPay have joined forces with M0 to introduce PYUSDx, a groundbreaking platform designed to help developers create their own stablecoins backed by PayPal USD. The new framework aims to bring flexibility, branding power, and technological scalability to a growing market hungry for trusted digital money solutions.
The initiative marks another milestone in PayPal’s expansion into blockchain and stablecoin infrastructure. Building on the success of PayPal USD, or PYUSD, the company now plans to open the doors for developers to issue customized stablecoins for their apps and platforms. PYUSDx serves as the bridge, allowing application developers to build digital assets that are reliable, transparent, and anchored in a regulated foundation.
According to the announcement, the rollout of PYUSDx is scheduled for next month, signaling an imminent step toward making stablecoin issuance more accessible for mainstream and enterprise developers alike.
PYUSDx Brings Branded Stablecoins to the Application Layer
As stablecoin competition heats up globally, PayPal’s latest offering enters the market at a critical moment. PYUSDx is designed to enable developers to issue tokens for specific apps or ecosystems, effectively turning digital payment infrastructure into a modular toolkit.
May Zabaneh, PayPal’s head of crypto, emphasized that the future of stablecoin adoption lies at the application layer. Developers want to innovate within their platforms but shouldn’t need to reconstruct the monetary system each time they do. PYUSDx is meant to handle the heavy lifting from reserve transparency to regulatory alignment — freeing developers to focus on user experience and creative utility.
PYUSDx combines the strengths of M0’s universal stablecoin infrastructure and MoonPay’s digital asset platform, offering fast deployment, cross-chain compatibility, and flexible economic models. With these features, developers can easily integrate stablecoins into gaming platforms, DeFi applications, or AI-driven marketplaces. The framework even supports branded token creation, allowing businesses to maintain consistent identity and trust across digital environments.
PYUSDx Builds on PayPal’s Expanding Digital Dollar Ecosystem
Since the launch of PayPal USD in August 2023, the company has steadily advanced its vision of a stable, compliant digital dollar for global commerce. PYUSD is a dollar-pegged stablecoin issued by Paxos Trust Company, regulated under US banking laws. While PYUSD serves as a general-use stablecoin, PYUSDx takes the concept further by functioning as a tokenization and issuance system managed by MoonPay Digital Assets.
Importantly, PYUSDx tokens are distinct from PayPal USD and cannot be stored, sent, or received in PayPal or Venmo wallets. Instead, PYUSDx acts as an independent framework that leverages the trust and liquidity of PayPal USD as a backing asset. This separation ensures that developers can innovate freely without disrupting existing payment ecosystems.
USD.ai, a decentralized finance protocol that already issues tokens such as USDai and sUSDai, is the first to build on the new platform. The project will use PYUSDx to power an application-specific stablecoin for AI infrastructure, showcasing how flexible the system can be for emerging sectors like artificial intelligence.
A New Phase for the Stablecoin Economy
The introduction of PYUSDx underscores PayPal’s growing influence in the Web3 economy. As digital payments and blockchain applications converge, stablecoins have become the essential bridge between fiat and programmable money. PYUSDx’s model of developer-focused stablecoin creation could accelerate that transition, allowing every platform to have its own digital dollar backed by one of the most recognized names in global payments.
Industry observers view this as a strategic response to intensifying competition. Reports suggest that Meta is exploring stablecoin payments across Facebook, Instagram, and WhatsApp. PayPal’s entry into customizable stablecoin infrastructure signals that the next battleground is the developer layer, where tailored financial tools can power everything from social commerce to metaverse economies.
Beyond technical innovation, PYUSDx reinforces the importance of transparency and regulatory compliance. By building on PayPal USD reserves, developers can rely on a stable, verified foundation — a crucial factor for both user trust and institutional adoption.
In late 2025, PayPal made headlines when YouTube began allowing creators to receive payouts in PayPal USD, marking one of the earliest mainstream integrations of a corporate-issued stablecoin. With PYUSDx, PayPal is extending that momentum from the platform level to the developer community, enabling a wave of customized, application-native stablecoins to emerge across industries.
The Path Forward for PYUSDx and Digital Payments
If PYUSDx delivers on its promise, it could usher in a new phase of digital payments where every app has its own stablecoin ecosystem built on top of trusted reserves. From decentralized marketplaces to global gaming platforms, the opportunities for seamless, programmable value exchange are vast.
For PayPal, MoonPay, and M0, this collaboration not only expands their technological footprint but also positions them as key infrastructure providers in the digital money era. By aligning innovation with compliance, PYUSDx could become the standard that links Web2 platforms and Web3 financial tools under one universal monetary framework.
As the global demand for stable, programmable currencies continues to rise, PYUSDx stands poised to redefine how developers, businesses, and consumers interact with digital value turning PayPal’s digital dollar into a living foundation for the next generation of internet economies.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
