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New York, February 28, 2026.
Crypto infrastructure leader MoonPay has unveiled PYUSDx, a new tokenization and issuance framework that enables developers to create branded, application-specific stablecoins fully backed by PayPal USD (PYUSD).
Announced yesterday in partnership with stablecoin platform M0 and supported by PayPal, the launch marks a significant step toward mainstream adoption of customizable digital dollars.
Key Takeaways
- Rapid Launch Capability: Developers can go from concept to live stablecoin in days, not months.
- Branded Flexibility: Create app-specific tokens for gaming, fintech, AI, or any vertical, all backed by PYUSD.
- Built-in Features: Includes reserve validation, interoperability across blockchains, and competitive economics.
- First Adopter: AI infrastructure project USD.ai is already building on PYUSDx.
What Is the PYUSDx Framework?
PYUSDx addresses a growing demand in the stablecoin market. Data from 2025 shows an 89% rise in newly issued stablecoins exceeding $10 million in supply, as builders seek tools tailored to specific ecosystems, apps, and business models.
Instead of months of regulatory and technical work, developers can now launch custom stablecoins in days using MoonPay’s infrastructure and M0’s universal stablecoin platform.
“Building and managing stablecoins at the application layer requires dependable infrastructure,” said Ivan Soto-Wright, CEO and co-founder of MoonPay. “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.”
The framework operates independently of PayPal’s core PYUSD (issued by Paxos Trust Company) but uses it as the 1:1 reserve asset. PYUSDx tokens are issued by MoonPay Digital Assets Limited, giving developers full branding control while maintaining regulatory-grade backing, on-chain transparency, and cross-chain compatibility.
Industry Reactions and Support
“The next phase of stablecoin adoption is happening at the application layer,” said May Zabaneh, Senior Vice President and General Manager of Crypto at PayPal. “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.”
Luca Prosperi, CEO of M0, added: “PYUSDx will allow developers to iterate much more quickly within an interoperable solution and with built-in liquidity.”
Why PYUSDx Matters for Crypto and Fintech
PYUSDx positions PayPal’s stablecoin as a foundation for innovation rather than a standalone product.
By handling reserves and compliance behind the scenes, MoonPay and M0 remove traditional barriers, potentially accelerating programmable money use cases in payments, DeFi, and beyond.
Industry observers note this could expand PYUSD demand as every new app-specific token increases activity on the underlying asset.
Conclusion
MoonPay’s PYUSDx framework signals the next evolution in stablecoins, from general-purpose assets to tailored, developer-friendly solutions.
With PayPal’s trusted backing and streamlined infrastructure, the launch lowers barriers for builders worldwide and could drive broader crypto adoption in 2026 and beyond.
As the first projects like USD.ai go live, the industry will watch closely to see how application-specific stablecoins reshape digital finance.
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FAQs:
1. What is the MoonPay PYUSDx framework?
PYUSDx is a tokenization platform that lets developers quickly issue their own branded stablecoins fully backed 1:1 by PayPal’s PYUSD stablecoin.
2. How is PYUSDx different from PayPal’s original PYUSD?
PYUSDx is an independent framework offered by MoonPay Digital Assets Limited. The tokens are not PayPal products and cannot be used directly in PayPal or Venmo accounts, but they are secured by the same regulated PYUSD reserves.
3. Who can use PYUSDx and when is it available?
Any developer building crypto applications can access it. The framework is live now, with the first project (USD.ai) already implementing it and general launches possible within days.
4. What are the main benefits of PYUSDx for developers?
It offers fast time-to-market, full branding control, cross-chain support, on-chain reserve transparency, and simpler economics, all without rebuilding banking or compliance infrastructure from scratch.
5. Does PYUSDx increase demand for PayPal’s PYUSD?
Yes. Every new application-specific stablecoin built on the framework uses PYUSD as its reserve asset, expanding overall usage and liquidity for the original stablecoin.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
