On February 28, PayPal and MoonPay announced the joint launch of the PYUSDx platform, allowing developers to issue application-specific stablecoins based on PayPal USD (PYUSD). Developed in partnership with M0, this framework aims to use PYUSD as the underlying reserve asset, providing brands and development teams with customized stablecoin issuance solutions.
According to the announcement, PYUSDx helps developers quickly launch PYUSD-backed digital dollar tokens without building complex infrastructure. The platform integrates MoonPay’s distribution and registration system with M0’s tokenization technology architecture, supporting cross-chain compatibility, on-chain reserve reporting, and flexible economic model design. The company states that from testing to official release, the development cycle can be shortened to just a few days, significantly reducing product launch time.
Ivan Soto-Wright, CEO of MoonPay, pointed out that as the stablecoin market continues to expand, developers need more efficient, low-cost tools to manage application-layer stablecoins. Data shows that by 2025, the number of stablecoins with a supply exceeding $10 million will have grown by 89%, and market demand for “application-level stablecoin issuance platforms” is clearly increasing.
Regarding issuance structure, the base PYUSD is issued by Paxos Trust Company, while the PYUSDx tokens are issued by MoonPay Digital Assets Limited. Both parties emphasize that PYUSDx is independent of PayPal’s native stablecoin system and cannot be used for payments or transfers within PayPal or Venmo wallets. Regulatory responsibilities are borne by each issuing entity according to the laws of different countries.
USD.ai is the first project to connect to PYUSDx, planning to build dedicated stablecoin application scenarios around artificial intelligence infrastructure. May Zabaneh, head of PayPal’s crypto business, stated that developers want to innovate financial products within a regulated and trusted framework without rebuilding the underlying currency system. Luca Prosperi, CEO of M0, believes that the platform provides liquidity support and interoperability for new projects, helping to improve the efficiency of the Web3 payment ecosystem.
Since its launch in 2023, PYUSD has continuously expanded its application boundaries. By 2025, users will be able to earn an annualized return of 3.7%. Subsequently, Stellar and Arbitrum networks were included in the support scope, optimizing transaction speed and cost structure. The release of PYUSDx is seen as a key step for PayPal’s infrastructure in stablecoins and its on-chain US dollar ecosystem.
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