Key Highlights
PayPal and MoonPay launched PYUSDx, a framework for issuing app‑specific stablecoins fully backed by PayPal USD (PYUSD), in partnership with stablecoin platform M0.
PYUSDx lets developers create branded stablecoins with faster time‑to‑market, cross‑chain support, and on‑chain reserve transparency, while relying on PayPal’s regulated PYUSD as the underlying asset.
PYUSD is issued by Paxos Trust Company, N.A., while PYUSDx tokens are issued by MoonPay Digital Assets and are not PayPal/Venmo assets.
New York, Feb. 27, 2026 – PayPal and MoonPay have introduced PYUSDx, an issuance framework that enables developers to launch custom, application‑specific stablecoins that are fully backed 1:1 by PayPal USD (PYUSD). The framework is built in collaboration with stablecoin platform M0 and combines MoonPay’s tokenization and distribution infrastructure with M0’s universal stablecoin layer. The move effectively turns PYUSD into base collateral for a new wave of branded, app‑specific stablecoins.
According to the official PYUSDx press release on the M0 website, the platform is designed to help projects go from concept to launch “in days, not months” by offloading much of the technical, liquidity, and compliance overhead to MoonPay and M0. PYUSDx enables issuance of PYUSD-backed tokens with cross-chain support and on-chain reserve reporting. MoonPay CEO Ivan Soto-Wright said it is meant to “reduce the technical and operational complexity” for developers.
PYUSD itself is a regulated USD‑backed stablecoin issued by Paxos Trust Company, N.A., under oversight from the U.S. Office of the Comptroller of the Currency (OCC), with reserves held in U.S. dollar deposits, Treasuries, and similar cash equivalents. It is designed for payments, redeemable 1:1 for U.S. dollars, and currently operates on Ethereum and Solana, forming the collateral base for all PYUSDx‑issued tokens.
In the launch materials, MoonPay notes that PYUSDx is a separate issuance framework (not PYUSD itself). PYUSDx-issued tokens are not supported for storage or transfer within PayPal or Venmo. MoonPay also said USD.ai is the first developer building on the framework.
