MoonPay and PayPal Push PYUSDx to Accelerate Stablecoin Creation

TLDR:

• PYUSDx allows developers to launch application-specific stablecoins backed by PayPal USD without building full issuance systems.
• The platform combines MoonPay distribution tools with M0’s token framework for faster stablecoin deployment.
• PYUSDx tokens remain separate from PayPal and Paxos products and cannot be used inside PayPal or Venmo apps.
• USD.ai is the first project using PYUSDx to power a stablecoin designed for AI infrastructure payments.

Thestablecoin market is shifting toward tokens built for specific apps and ecosystems. MoonPay, M0, and PayPal have introduced PYUSDx as new infrastructure for issuing application-focused stablecoins. 

The platform connects PayPal USD with developer tools designed for faster deployment. The move reflects rising demand for branded stablecoins that avoid complex back-end setup.

PYUSDx platform targets application-specific stablecoin growth

PYUSDx allows developers to create their own stablecoins backed by PayPal USD without building full issuance systems. The platform combines M0’s token framework with MoonPay’s distribution infrastructure.

According to a joint announcement from MoonPay and M0, the goal is to shorten launch timelines from months to days. Developers can issue branded tokens tied directly to PYUSD reserves.

The companies pointed to data showing a sharp increase in new stablecoins exceeding $10 million in supply during 2025. That trend signals growing interest in application-level monetary systems.

PayPal described the initiative as part of a broader shift toward building financial tools directly inside apps. PYUSDx supports this approach by offering a standardized base layer for developers.

The framework also aims to reduce regulatory and operational complexity. PYUSD itself is issued by Paxos Trust Company, giving the backing asset a regulated foundation.

How PYUSDx connects developers to PayPal USD liquidity

PYUSDx functions as a tokenization and issuance framework operated by MoonPay Digital Assets Limited. It enables third parties to create new stablecoins that remain fully backed by PayPal USD.

The platform supports cross-chain compatibility through M0’s ecosystem. Developers can deploy tokens across multiple blockchain networks using the same underlying reserve asset.

Reserve transparency forms another core feature. PYUSDx includes on-chain reporting tools and validation processes designed to show backing assets clearly.

The first project building on PYUSDx is USD.ai. The company is developing a stablecoin for payments tied to AI infrastructure services.

Regulatory distinctions remain central to the rollout. PYUSDx tokens are not issued by PayPal or Paxos and do not function inside PayPal or Venmo accounts.

MoonPay stated that licensing and compliance depend on the jurisdiction where each token launches. Responsibility remains with each issuer using the framework.

The companies framed PYUSDx as infrastructure rather than a consumer product. Its purpose is to let developers focus on product design while relying on existing stablecoin rails.

By connecting branded tokens to PayPal USD liquidity, the platform seeks to streamline how applications integrate stablecoin payments and settlements.