Moonpay, M0, and Paypal Launch 'PYUSDx' to Power Application-Specific Stablecoins

Announced on February 27, 2026, PYUSDx is designed to eliminate the months of technical and regulatory overhead usually required to bring a new stablecoin to market. By using PYUSD—issued by the federally regulated Paxos Trust Company—as the underlying reserve, developers can now deploy “app-specific” stablecoins in a matter of days. This initiative targets the growing trend of “ Stablecoin 2.0,” where ecosystems and artificial intelligence (AI) protocols require custom digital dollars tailored to their specific economic models.

While PYUSDx tokens are backed by PYUSD, they are issued by Moonpay Digital Assets Limited and are distinct from the core Paypal product. The first developer to utilize this infrastructure is USD.ai, which is building a stablecoin specifically for AI infrastructure payments.

“The next phase of stablecoin adoption is happening at the application layer… we’re excited to see Moonpay and M0 use PYUSDx to help bring new, application-specific stablecoins to market,” says May Zabaneh, SVP and GM of Crypto at Paypal.

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🛠️ Key Features for Developers

The PYUSDx platform provides a modular stack for rapid deployment:

• Fast Time-to-Market: Moves from development to launch in days rather than months.

• Branded Issuance: Allows companies to issue tokens under their own brand while maintaining 1:1 backing by PYUSD.

• Cross-Chain Interoperability: Leverages M0’s infrastructure for seamless movement across different blockchain networks.

• Onchain Transparency: Supports real-time reserve validation and reporting to ensure trust.

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🧭 FAQs

• Is PYUSDx the same as the Paypal USD (PYUSD) found in the Paypal app? No. PYUSDx is a separate tokenization framework issued by Moonpay. It is backed by PYUSD but is not a Paypal or Paxos product.

• Can I use PYUSDx tokens inside my Paypal or Venmo account? No. PYUSDx tokens are currently not supported for storage or transactions within the PayPal or Venmo platforms.

• Who is the first user of this new infrastructure? USD.ai is the inaugural developer, using the platform to power an AI-focused stablecoin.

• What is the “M0” platform mentioned in the announcement? M0 is a universal stablecoin layer that provides the programmable and interoperable “digital dollar” technology used to mint these new assets.