PayPal has teamed up with MoonPay to launch a new platform that lets developers create their own stablecoins backed by PayPal USD.
In a joint announcement on Feb. 27, PayPal and MoonPay unveiled PYUSDx. The new framework allows apps to issue custom stablecoins that use PayPal USD as the reserve asset.
The companies said PYUSDx is designed to cut down the time and cost of launching a stablecoin. Instead of building complex infrastructure from scratch, developers can rely on MoonPay’s onboarding system and M0’s token platform. They claim this can reduce launch timelines from months to just days.
Under the structure, the base PYUSD token is issued by Paxos Trust Company. However, PYUSDx tokens are issued through MoonPay Digital Assets Limited. The firms stressed that PYUSDx tokens are separate from PayPal’s main stablecoin and will not be supported inside PayPal or Venmo wallets.
The platform also offers cross-chain compatibility, on-chain reserve reporting, and flexible economic models. The companies said demand for app-specific stablecoins has grown fast, with more projects looking for easier ways to launch branded digital currencies.
USD.ai is the first project building on PYUSDx. It plans to develop a stablecoin focused on artificial intelligence infrastructure.
Since launching PYUSD in 2023, PayPal has expanded the stablecoin’s reach. In 2025, users began earning 3.7% annually on PYUSD balances, and support was added for networks like Stellar and Arbitrum to improve speed and reduce costs.
PayPal said PYUSDx gives developers a regulated base to build new financial products. However, the companies added that regulatory treatment will vary by region, and issuers are responsible for compliance.
