PayPal has introduced PYUSDx, a developer-focused platform that enables the creation of US dollar-pegged stablecoins backed by PayPal USD.
The company announced the product with MoonPay and M0, stating that it will roll out next month.
The firms said PYUSDx allows developers to launch application-specific stablecoins within their own apps, platforms, and ecosystems.
The launch expands PayPal’s stablecoin strategy amid intensifying competition in digital payments.
PayPal expands Stablecoin strategy with PYUSDx framework
PayPal, MoonPay, and M0 said PYUSDx combines M0’s universal stablecoin and digital token platform with MoonPay Group’s infrastructure.
The framework reduces technical and operational barriers for developers seeking to issue US dollar-backed stablecoins.
PYUSDx supports fast deployment, cross-chain compatibility, flexible economics, and reserve transparency. It also enables the creation of branded stablecoins tailored to specific use cases.
May Zabaneh, PayPal’s head of crypto, said stablecoin adoption is shifting toward the application layer. She said developers want to build differentiated experiences without rebuilding trusted monetary infrastructure from scratch.
Zabaneh added that MoonPay and M0 would use PYUSDx to bring new application-specific stablecoins to market on a regulated foundation.
The announcement clarified that PYUSDx is separate from PayPal USD. MoonPay Digital Assets offers a tokenization and issuance framework.
PYUSDx tokens cannot be used, sent, or stored in PayPal or Venmo accounts.
Paxos Trust Company issues the US dollar-pegged stablecoin as a federally regulated national banking association.
Stablecoin competition expands across major platforms
PYUSDx launch comes amid increasing competition in the stablecoin market. Reports indicate that Meta plans stablecoin-based payments across Facebook, Instagram, and WhatsApp.
The development reflects growing interest in integrating digital dollar payments across consumer platforms.
USD.ai, a decentralized finance protocol, is the first developer building on PYUSDx.
The protocol issues stablecoins, including USDai and yield-bearing sUSDai. It will use PYUSDx to support an application-specific stablecoin designed for AI infrastructure.
PayPal continues expanding real-world use cases for PayPal USD. In late 2025, YouTube reportedly enabled US-based creators to accept payouts in PYUSD.
The move highlighted expanding adoption of the digital dollar beyond traditional finance channels.