MoonPay and PayPal Launch PYUSDx Stablecoin Platform

Updated on: February 27, 2026

MoonPay and PayPal have introduced PYUSDx, a new infrastructure platform that allows developers to launch application specific stablecoins backed by PayPal USD.

Key Takeaways

PYUSDx enables developers to create branded stablecoins backed by PayPal USD.
The platform reduces launch time from months to days.
USD.ai is the first project building on PYUSDx.
MoonPay Digital Assets will issue the tokens, while PYUSD remains issued by Paxos Trust Company.

What Happened?

MoonPay, PayPal, and M0 have unveiled PYUSDx, a framework that allows developers to issue custom stablecoins backed by PayPal USD, also known as PYUSD. The platform combines MoonPay’s issuance and distribution network with M0’s stablecoin infrastructure to simplify the process of launching branded digital tokens.

The companies say the goal is to help developers build application level stablecoins without having to create complex technical and operational systems from scratch.

Introducing PYUSDx, a stablecoin tokenization framework from PayPal, @M0, and MoonPay.

🪙 Backed 1:1 by @PayPal USD

⚡️ Go from build to launch in days, not months

🌐 Purpose-built for issuance, distribution, and interoperability

Let’s build together. pic.twitter.com/oLu6KDpopo
— MoonPay 🟣 (@moonpay) February 27, 2026

A New Layer for Stablecoin Innovation

The stablecoin market is evolving rapidly. According to the companies, the number of stablecoins with supplies exceeding 10 million dollars rose by 89 percent in 2025 alone. This growth has fueled demand for more efficient tools that allow fintech builders and crypto developers to launch tailored digital currencies for specific ecosystems and business models.

PYUSDx is designed to fill that gap. Instead of issuing a stablecoin from the ground up, developers can now create branded tokens backed by PayPal USD, leveraging an established and regulated reserve asset.

Under the structure, PYUSD is issued by Paxos Trust Company, NA, a federally regulated national trust bank. Meanwhile, PYUSDx tokens are issued by MoonPay Digital Assets Limited, which recently received a New York trust charter allowing it to act as an issuer.

It is important to note that PYUSDx tokens are separate from PayPal’s native PYUSD token. They are not PayPal products or services and cannot be stored, sent, or received within PayPal or Venmo accounts.

Faster Launch, Lower Complexity

One of the key selling points of PYUSDx is speed. The platform allows developers to move from testing to launch in a matter of days rather than months.

Ivan Soto Wright, CEO and co founder of MoonPay, said:

“

Building and managing stablecoins at the application layer requires dependable infrastructure. Through PYUSDx, the MoonPay Group is extending its issuance and distribution capabilities to make PYUSD more accessible to developers, reducing the technical and operational complexity of bringing application specific stablecoins to market.

M0 plays a central role in the structure by separating reserve management from token issuance. This design allows issuers to delegate reserve management, making it significantly faster to deploy new stablecoins while maintaining built in liquidity and interoperability.

Luca Prosperi, CEO of M0, said:

“

Developers of crypto applications have been early adopters of custom stablecoin backed technology, but they still don’t have a trusted platform they can use to quickly bootstrap solutions. PYUSDx will allow developers to iterate much more quickly within an interoperable solution and with built in liquidity. We believe every fintech developer will eventually utilize a solution like PYUSDx.

The platform also offers cross chain compatibility, on chain reserve reporting, and flexible economic models designed to compete with other stablecoin backed products.

Expanding PayPal’s Stablecoin Strategy

Since launching PYUSD in 2023, PayPal has steadily expanded its stablecoin ecosystem. In April 2025, users began earning 3.7 percent annually on PYUSD balances. Later that year, Stellar and Arbitrum were added to increase transaction speed and reduce costs.

May Zabaneh, Senior Vice President and General Manager of Crypto at PayPal, said:

“

The next phase of stablecoin adoption is happening at the application layer. Developers want to build differentiated experiences, but they shouldn’t have to rebuild trusted monetary infrastructure from scratch. We’re excited to see MoonPay and M0 use PYUSDx to help bring new, application specific stablecoins to market, anchored in a regulated, trusted foundation.

USD.ai has been named as the first developer building on PYUSDx. The project is using the framework to back an application focused stablecoin designed for artificial intelligence infrastructure.

The companies also noted that regulatory treatment of PYUSDx tokens may vary by jurisdiction. Compliance responsibilities will fall on individual issuers. The launch also raises potential questions around how US stablecoin legislation, including the GENIUS Act, could impact where these tokens are permitted to operate.

CoinLaw’s Takeaway

In my view, this is a smart move by MoonPay and PayPal. Instead of competing in a crowded stablecoin market with yet another token, they are offering infrastructure. In my experience covering crypto markets, infrastructure plays often have longer staying power than standalone coins.

I found the separation between reserve management and issuance especially interesting. It lowers barriers for developers while still anchoring new tokens to a regulated foundation like PYUSD. If stablecoins are truly moving toward application level use cases, platforms like PYUSDx could become essential building blocks for the next wave of fintech innovation.