PayPal taps MoonPay and M0 to launch PYUSDx stablecoin issuance framework

PayPal, the digital payments giant, MoonPay and M0 announced PYUSDx today, a framework enabling developers to build branded dollar pegged tokens backed by PayPal’s existing stablecoin.

The product is designed to allow app developers to launch their own dollar pegged tokens without building reserve and compliance infrastructure from scratch. The rollout is scheduled for next month.

“The next phase of stablecoin adoption is happening at the application layer,” said May Zabaneh, PayPal’s head of crypto.

PYUSDx merges M0’s token issuance technology with MoonPay’s operational tools, allowing launches in days rather than months. The framework supports deployment across multiple blockchains and offers transparent reserve reporting.

USD.ai, a decentralized finance protocol focused on AI infrastructure, will be the first builder on the platform, creating a purpose-built stablecoin for its ecosystem.

Tokens created through PYUSDx remain distinct from PayPal USD itself and cannot be held or transferred via PayPal or Venmo wallets.

PayPal USD, introduced in August 2023 through Paxos Trust Company, has expanded steadily and is currently the sixth-largest stablecoin by market capitalization, with more than $4.1 billion in circulation, according to CoinGecko data.