PayPal, MoonPay launch platform to support custom stablecoin issuance for PYUSD apps

PayPal and MoonPay have introduced a new platform that allows developers to create custom stablecoins backed by PayPal’s PYUSD.

In a joint Feb. 27 press release, 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 apps to issue tokens backed by PYUSD, while relying on MoonPay’s distribution and onboarding systems and M0’s token platform.

Building application-level stablecoins

According to the announcement, the number of stablecoins with supplies above $10 million rose 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, chief executive of MoonPay, said developers need dependable tools to manage stablecoins at the application layer. He added that PYUSDx reduces technical and operational hurdles and shortens the time needed to bring products to market.

Under the structure, the base PYUSD token is issued by Paxos Trust Company, while PYUSDx tokens are issued through MoonPay Digital Assets Limited. The companies stressed that PYUSDx tokens are separate from PayPal’s native stablecoin and are not supported within PayPal or Venmo wallets.

The platform offers cross-chain compatibility, on-chain reserve reporting, and flexible economic models. Additionally, it facilitates quick deployment, allowing developers to go from testing to launch in a matter of days as opposed to months. 

USD.ai has been named as the first developer to use PYUSDx, building an application-focused stablecoin for artificial intelligence infrastructure.

Expanding PayPal’s stablecoin ecosystem

Since its debut in 2023, PayPal has worked to increase the use of PYUSD, and this launch builds on those efforts. Users started earning 3.7% a year 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 trusted 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 regulatory treatment of PYUSDx tokens will vary by region and remains the responsibility of individual issuers. PYUSDx tokens cannot be used for payments or transfers within PayPal or Venmo.