PayPal and MoonPay have introduced a new platform that allows developers to create custom stablecoins backed by PayPal’s PYUSD.
In a joint press release on February 27, the companies announced the launch of PYUSDx, a framework developed with M0 to support application-specific stablecoins using PayPal USD as the underlying reserve asset.
PYUSDx is designed to help developers launch branded stablecoins without building complex infrastructure from scratch. The platform allows applications to issue PYUSD-backed tokens, while leveraging MoonPay’s distribution and integration systems and M0’s token platform.
Creating stablecoins at the application level
According to the announcement, the number of stablecoins with supplies above $10 million increased by 89% in 2025. The companies said this growth has increased demand for faster and cheaper ways to launch custom digital currencies.
Ivan Soto-Wright, CEO of MoonPay, said developers need reliable tools to manage stablecoins at the application level. He added that PYUSDx reduces technical and operational hurdles and shortens the time needed to bring products to market.
Under this structure, the PYUSD base token is issued by Paxos Trust Company, while PYUSDx tokens are issued through MoonPay Digital Assets Limited. The companies emphasized that PYUSDx tokens are separate from PayPal’s native stablecoin and are not supported in PayPal or Venmo wallets.
The platform offers cross-chain compatibility, on-chain reserve reporting, and flexible business models. Additionally, it facilitates rapid deployment, allowing developers to go from testing to launch in days rather than months.
USD.ai was named as the first developer to use PYUSDx, creating an application-focused stablecoin for artificial intelligence infrastructure.
Expansion of PayPal’s stablecoin ecosystem
Since its debut in 2023, PayPal has worked to increase the usage of PYUSD, and this launch builds on those efforts. Users began earning 3.7% annually on PYUSD balances in April 2025. Stellar and Arbitrum were added to the stablecoin later that year, increasing speed and reducing transaction costs.
May Zabaneh, head of crypto at PayPal, said developers want to create unique financial products without rebuilding core monetary systems. She described PYUSDx as a way to anchor new projects in a regulated and reliable structure.
Luca Prosperi, chief executive of M0, said the platform allows developers to iterate faster while benefiting from built-in liquidity and interoperability.
The companies also noted that the regulatory treatment of PYUSDx tokens will vary by region and remain the responsibility of each issuer. PYUSDx tokens cannot be used for payments or transfers within PayPal or Venmo.