Introduction
PayPal and MoonPay have unveiled an innovative platform aimed at streamlining the creation of personalized stablecoins backed by PayPal’s PYUSD. According to a collaboration announcement made on February 27, this initiative, called PYUSDx, is crafted in partnership with M0 and is focused on facilitating the launch of application-specific stablecoins, leveraging PayPal USD as the primary underlying asset.
Features of PYUSDx
Designed with developers in mind, the PYUSDx framework significantly reduces the complexity traditionally associated with launching branded stablecoins, allowing users to issue tokens that are underpinned by PYUSD. This is achieved while taking advantage of MoonPay’s established onboarding processes and M0’s token functionalities. The surge in stablecoins featuring supplies exceeding $10 million surged by 89% in 2025, indicating a growing need for quicker, more economical methods for launching bespoke digital currencies, a gap this platform aims to fill.
Statements from Industry Leaders
Ivan Soto-Wright, the CEO of MoonPay, emphasized the necessity for reliable tools at the application layer for managing stablecoins, noting that PYUSDx minimizes both technical barriers and operational challenges, effectively shortening product development timelines.
It’s important to highlight that while the underlying PYUSD token is issued by Paxos Trust Company, the derivatives known as PYUSDx tokens are issued by MoonPay Digital Assets Limited and are entirely distinct from PayPal’s own stablecoin offerings, which do not support these tokens in PayPal or Venmo wallets.
Platform Capabilities
The PYUSDx platform boasts numerous features, including cross-chain compatibility, real-time on-chain reserve reporting, and a range of flexible economic models, enabling developers to move from development to launch within days instead of months. The first entity to adopt PYUSDx is USD.ai, which is in the process of creating a stablecoin tailored for artificial intelligence services.
Future Developments
This launch is part of PayPal’s ongoing endeavors to enhance the utilization of PYUSD, a move that gained traction in 2023, and it follows other enhancements such as interest earnings of 3.7% on PYUSD balances starting in April 2025, along with the introduction of Stellar and Arbitrum for improved transaction efficiency.
May Zabaneh, PayPal’s head of crypto, articulated the desire among developers to conjure unique financial products without the need to recreate foundational monetary frameworks and regarded PYUSDx as a secured foundation for new ventures within regulated environments.
Meanwhile, Luca Prosperi, CEO of M0, praised the platform for its design that allows for rapid development while leveraging built-in liquidity and extensive interoperability.
Regulatory Considerations
Lastly, the regulatory treatment of PYUSDx will differ by jurisdiction, with individual issuers responsible for compliance. It is noteworthy that these tokens are not permitted for transactions within PayPal or Venmo.
