Payment giant PayPal is set to broaden access to its stablecoin through a newly introduced platform, PYUSDx, which will enable developers to create their own US dollar-pegged tokens backed by PayPal USD (PYUSD). In collaboration with MoonPay and the stablecoin platform M0, the news was announced in a joint statement shared with industry publication Cointelegraph. The rollout of PYUSDx is scheduled for next month.
May Zabaneh, PayPal’s head of crypto, emphasized that this initiative signals a new phase of stablecoin adoption, focused on the application layer. She noted that developers are eager to create unique experiences and shouldn’t have to construct trusted monetary infrastructure from the ground up.
This launch arrives amid escalating competition in the stablecoin market, particularly as companies like Meta are reportedly exploring stablecoin-based payment options across platforms such as Facebook, Instagram, and WhatsApp.
PYUSDx distinguishes itself from PayPal USD as a comprehensive tokenization and issuance framework developed by MoonPay Digital Assets. Launched in August 2023, PayPal USD is a stablecoin pegged to the US dollar and issued by Paxos Trust Company, a federally regulated banking entity. PYUSDx integrates M0’s universal stablecoin capabilities with MoonPay’s technological infrastructure. The collaboration aims to facilitate the swift launch of US dollar-backed stablecoins while alleviating technical and operational challenges for developers. Features of PYUSDx include rapid launch speeds, cross-chain compatibility, flexible economic structures, transparent reserves, and the capability to create branded stablecoins.
Zabaneh expressed enthusiasm for the partnership with MoonPay and M0, anticipating that PYUSDx will help bring innovative application-specific stablecoins to market, founded on a regulated and trustworthy base.
Among the first developers utilizing PYUSDx is USD.ai, a decentralized finance protocol issuing stablecoins such as USDai and yield-bearing sUSDai. USD.ai plans to support an application-specific stablecoin aimed at AI infrastructure, leveraging the capabilities of PYUSDx.
It is noteworthy that PYUSDx tokens will not be interchangeable with PayPal USD, and they cannot be used, sent, or stored within PayPal or Venmo accounts, as specified in the announcement.
The introduction of PYUSDx also marks PayPal’s ongoing effort to expand real-world applications for its stablecoin. Notably, in late 2025, popular video-sharing platform YouTube reportedly allowed US-based creators to receive payouts in PYUSD, underlining the increasing acceptance of the digital dollar beyond the realms of traditional finance.
