Moonpay, M0, and PayPal Launch PYUSDx: Platform for Creating Custom Stablecoins for Applications

A major partnership between Moonpay, the universal stablecoin platform M0, and PayPal has opened a new direction in the digital currency space. Announced at the end of February 2026, PYUSDx is a technology framework that allows developers to quickly deploy their own branded stablecoins backed by PYUSD— a currency issued by Paxos Trust Company (a federally regulated company).

This initiative addresses a simple but challenging economic problem: developers often have to invest months in legal and technical costs to bring a new stablecoin to market. With PYUSDx, this process is shortened to just a few days, thanks to using PYUSD as the underlying reserve asset.

What is Stablecoin 2.0? Why is an M0 platform needed?

The stablecoin market is entering a new phase called “Stablecoin 2.0.” Unlike the first generation, which was just a unit of value measurement, the new generation stablecoins need to be tailored for each ecosystem, especially those centered around artificial intelligence (AI) and other protocols.

M0 acts as a foundational layer that enables the creation of programmable, interoperable “digital dollars” that can be customized for specific applications. This is why Moonpay chose M0 as the infrastructure platform for PYUSDx.

Benefits of PYUSDx for developers and applications

The PYUSDx platform offers a comprehensive modular toolkit for developers:

Accelerated time to market: Instead of waiting months for legal and technical procedures, developers can launch their stablecoin in just a few days.

Branding and issuance control: Companies retain autonomy in issuing tokens under their own brand names while enjoying the security of a 1:1 backing by PYUSD.

Cross-chain interoperability: Leveraging M0’s infrastructure, PYUSDx allows tokens to move seamlessly across different blockchains, expanding usability.

On-chain transparency: The entire reserve can be verified and reported in real-time, building user trust through blockchain technology.

USD.ai: The first practical application on the M0 platform

The first developer to utilize this infrastructure is USD.ai, a project focused on creating stablecoins dedicated to payments related to AI infrastructure. This choice is not accidental—it reflects a trend PayPal also recognizes: the future of stablecoins lies in the application layer.

May Zabaneh, Senior Vice President and Head of Crypto at PayPal, commented: “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 specific stablecoins to market for different applications.”

Frequently Asked Questions about PYUSDx

Is PYUSDx the same as PayPal USD (PYUSD) in the PayPal app?

No. PYUSDx is an independent tokenization framework issued by Moonpay Digital Assets Limited. Although supported by PYUSD, it is not a core product of PayPal or Paxos.

Can I use PYUSDx tokens on PayPal or Venmo?

Currently, no. PYUSDx tokens are not supported for storage or transactions on PayPal or Venmo platforms.

What is M0?

M0 is a universal stablecoin layer providing technology for programmable, interoperable “digital dollars.” It is the platform on which Moonpay built PYUSDx, enabling developers to create new stablecoin assets tailored to their needs.

What is USD.ai?

USD.ai is the first application using the M0 platform and PYUSDx. It is developing a stablecoin focused on AI infrastructure payments.

The launch of PYUSDx marks a significant step toward democratizing stablecoin creation. By lowering technical and legal barriers, Moonpay, M0, and PayPal are opening the door to a new wave of application-centric stablecoins, promising more practical digital payment solutions tailored to the needs of various ecosystems.