PayPal and MoonPay have launched a groundbreaking platform known as PYUSDx, aimed at enabling developers to create custom stablecoins backed by PayPal’s PayPal USD (PYUSD). The announcement, made during a press release on February 27, details a collaboration with M0 to develop a framework that simplifies the issuance of application-specific stablecoins.
PYUSDx is tailored to assist developers in launching branded stablecoins efficiently, eliminating the need for building complex infrastructure from scratch. By leveraging MoonPay’s distribution and onboarding systems alongside M0’s token platform, this new framework allows apps to issue tokens backed by PYUSD with significantly reduced launch times—streamlining the process from months to mere days.
The demand for custom digital currencies has surged, evidenced by a reported 89% increase in stablecoins with supplies exceeding $10 million in 2025. Ivan Soto-Wright, CEO of MoonPay, emphasized the necessity for reliable tools at the application layer, highlighting that PYUSDx mitigates technical and operational barriers while accelerating product market entry.
Under the PYUSDx structure, the base PYUSD token is issued by Paxos Trust Company. However, it’s important to note that PYUSDx tokens, which are issued through MoonPay Digital Assets Limited, operate as separate entities and are not integrated into PayPal or Venmo wallets.
Features of the PYUSDx platform include cross-chain compatibility, on-chain reserve reporting, and adaptable economic models. Developers can quickly deploy their projects and transition from testing to launch in just days. USD.ai has already emerged as the first developer to utilize PYUSDx, focusing on building a stablecoin for artificial intelligence infrastructures.
This initiative signifies PayPal’s ongoing commitment to expanding its stablecoin ecosystem, which began with the introduction of PYUSD in 2023. Since that time, users have been able to earn interest on their PYUSD holdings, with rates reaching 3.7% annually starting April 2025. Later enhancements, which included the integration of the Stellar and Arbitrum networks, aimed to increase transaction speed and lower costs.
May Zabaneh, PayPal’s head of crypto, explained that developers increasingly seek to create innovative financial products without having to reconstruct foundational monetary systems. She characterized PYUSDx as a means to establish new projects within a regulated and trusted environment.
Luca Prosperi, CEO of M0, reinforced the benefits of PYUSDx, allowing developers to iterate more rapidly while capitalizing on inherent liquidity and interoperability features.
It’s crucial for users and developers to be aware that regulatory treatment of PYUSDx tokens will differ across various regions, placing the onus of compliance on individual issuers. Furthermore, PYUSDx tokens will not be permissible for payments or transactions within PayPal or Venmo, ensuring clear delineation between these new assets and PayPal’s established financial ecosystem.
