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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Spark lending platform launches SPK token buyback program, has repurchased 1.84 million tokens
According to on-chain analyst Yu Yan's monitoring, the lending platform Spark transferred 570,000 USDS to a new multi-signature wallet on March 5th, initiating the SPK token buyback. They have already repurchased 1.84 million SPK tokens, worth approximately $36,000. This buyback plan is expected to last 12 months, with 10% of funds each month allocated for repurchasing.
GateNews11m ago
Hedera Powers 19 Live Transactions at Reserve Bank of Australia
The Reserve Bank of Australia’s Project Acacia successfully tested blockchain through 19 real transactions using Hedera technology. This initiative explores various tokenization use cases, signaling a potential shift in modernizing financial markets and enhancing efficiency.
Coinfomania26m ago
Sky (SKY) Token Surges After Governance Vote Cuts Emissions and Expands USDS Stablecoin Credit Infrastructure
SKY rose 10% after the network cut staking emissions and continued buybacks, tightening supply across the market.
Sky expanded the USDS credit infrastructure as lower token issuance and steady buybacks supported bullish market momentum.
SKY, the governance token of the DeFi protocol
CryptoNewsFlash37m ago
PayPal's former AI Payments Head Ehsan Yousefzadeh joins Kite AI as Chief Product Officer
Kite AI announces Ehsan Yousefzadeh joins as Head of Product, having previously led AI payments at PayPal and possessing extensive experience in internet and payment product management. This addition will drive the development of agent-based infrastructure and autonomous intelligent agents.
GateNews2h ago
Pi Network Tests AI Computing on Nodes Ahead of Pi Day DEX Launch
Pi Network tested AI image recognition on nodes with OpenMind, using idle CPU power during its ongoing Mainnet upgrade phase.
The network requires Mainnet nodes to upgrade to v20.2 by March 12 as part of its path toward version 23.0 in Q2 this year.
Pi Network is testing artificial
CryptoNewsFlash2h ago
Bitcoin Payments Expand as Utexo Secures $7.5M From Tether
Utexo has secured $7.5 million to enable direct USDT settlements on the Bitcoin network, reducing reliance on bridges and enhancing payment efficiency. Tether's investment signals strong market potential for Bitcoin as a stablecoin payment platform.
Coinfomania2h ago
