Payments giant PayPal is expanding access to stablecoins through a new platform that allows developers to create their own USD-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 ($PYUSDA stablecoin (for use within an application) or a token designed for use within 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, where developers want to build differentiated experiences without having to rebuild trusted financial infrastructure from scratch,” said May Zabane, head of cryptocurrencies at PayPal.
The announcement comes as competition in the stablecoin market increases, with companies including Meta reportedly planning stablecoin-based payments across a range of apps, including Facebook, Instagram, and WhatsApp.
PYUSDx is a combination of M0’s universal stablecoin and the MoonPay platform
Launched in August 2023, PayPal USD is a stablecoin pegged to the US dollar issued by Paxos Trust Company, a federally regulated national banking association.
PYUSDx is something else $PYUSD According to the announcement, this is described as a tokenization and issuance framework provided by MoonPay Digital Assets.
PayPal USD ($PYUSD) is the 6th largest stablecoin by market capitalization, with $4.2 billion. sauce: CoinGecko
The companies said PYUSDx will combine M0’s universal stablecoin and digital token platform with MoonPay Group’s infrastructure to simplify the launch of USD-backed stablecoins by reducing technical and operational burdens.
It also features fast startup speeds, cross-chain compatibility, flexible economics, reserve transparency, and the ability to create branded stablecoins.
PayPal’s Zabaneh said, “We are excited that MoonPay and M0 can use PYUSDx to bring to market a new, application-specific stablecoin based on a regulated and trusted foundation.”
Related: Stripe considers acquiring part or all of PayPal: report
USD.ai, a decentralized finance protocol that issues stablecoins such as USDai and high-yield sUSDa, is the first developer to build on top of PYUSDx and use the platform to support application-specific stablecoins for AI infrastructure.
PYUSDx tokens are separate from PayPal USD and cannot be used, sent, or stored in PayPal or Venmo accounts, the announcement states.
The launch of PYUSDx comes as PayPal continues to expand real-world use cases for stablecoins. In late 2025, video sharing giant YouTube reportedly began allowing US-based creators to receive payments. $PYUSDhighlighting the growing adoption of the digital dollar beyond traditional finance.
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