PayPal, in collaboration with MoonPay and M0, is launching PYUSDx, a new platform designed to simplify the issuance of branded dollar tokens backed by PayPal USD. This framework allows app developers to deploy their own dollar-pegged tokens without the extensive burden of building reserve and compliance infrastructure from the ground up.
"The next phase of stablecoin adoption is happening at the application layer," stated May Zabaneh, PayPal’s head of crypto. The PYUSDx platform integrates M0's token issuance technology with MoonPay’s operational tools, significantly reducing launch times from months to days. It also supports deployment across various blockchains and provides transparent reserve reporting.
USD.ai, a DeFi protocol specializing in AI infrastructure, is set to be the inaugural builder on the platform, developing a stablecoin tailored for its ecosystem. Tokens issued via PYUSDx will be distinct from PayPal USD and not accessible through PayPal or Venmo wallets.
PayPal USD, launched in August 2023, has seen substantial growth, currently ranking as the sixth-largest stablecoin by market capitalization with over $4.1 billion in circulation.