MoonPay, in partnership with M0, has unveiled PYUSDx, a framework designed to let developers issue application-specific stablecoins backed by PayPal USD reserves. The system enables builders to launch branded tokens without managing their own custody, liquidity, or issuance infrastructure, positioning MoonPay as a backend provider for fintech and digital asset applications. Tokens issued through PYUSDx remain separate from PayPal USD and will not be directly supported within PayPal or Venmo ecosystems.
The framework uses PayPal USD, issued by Paxos Trust Company, as the reserve asset while MoonPay Digital Assets Limited operates the tokenization and issuance layer. This structure allows developers to create customized stablecoins tied to a regulated dollar-backed asset while maintaining operational independence from PayPal’s consumer platforms. The rollout comes as competition increases in programmable stablecoin infrastructure and embedded payment solutions.
Strategically, the launch aligns with MoonPay’s broader push into AI-linked crypto infrastructure, including recent tools that enable autonomous wallet creation and onchain transactions by AI agents. For PayPal, whose stablecoin trails larger competitors such as USDT and USDC in circulation, PYUSDx could extend the utility of its dollar-backed token through third-party applications, reinforcing its role in institutional and developer-focused digital payment ecosystems.
