MoonPay and M0 have introduced PYUSDx, a framework enabling developers to issue application-specific stablecoins backed by PayPal USD.
Following this announcement, MoonPay and M0 have introduced PYUSDx, a tokenisation and issuance framework that allows developers to create application-specific stablecoins backed by PayPal USD (PYUSD). The platform is designed to reduce the technical and operational complexity of bringing branded stablecoins to market, enabling developers to move from build to launch within days rather than months.
Infrastructure for the application layer
According to the official press release, PYUSDx combines M0's universal stablecoin and digital token platform with MoonPay's issuance and distribution infrastructure. The offering provides cross-chain compatibility across M0's ecosystem, on-chain reserve reporting and validation, and what the companies describe as more flexible economics compared with other stablecoin-backed products.
PYUSD itself is issued by Paxos Trust Company, a federally regulated national banking association in the US. PYUSDx is a distinct framework issued by MoonPay Digital Assets Limited and operates independently from PayPal and Paxos. Tokens created on the platform are not supported within PayPal or Venmo accounts and cannot be used to transact on those platforms. The regulatory treatment of PYUSDx tokens varies by jurisdiction and remains the responsibility of each issuer.
A market moving toward application-specific stablecoins
The announcement reflects a broader structural shift in the stablecoin market. According to MoonPay, the number of newly issued stablecoins with a supply exceeding USD 10 million grew by 89% in 2025 alone. This growth signals increasing demand from developers and businesses seeking to deploy branded digital currencies tailored to specific ecosystems, protocols, or business models — without building the underlying monetary infrastructure independently.
A company official at M0 noted that developers still lack a trusted platform to bootstrap stablecoin solutions quickly, and that interoperability and built-in liquidity are critical gaps PYUSDx aims to address.
PYUSDx is positioned at the application layer of the stablecoin stack, where differentiation increasingly occurs. Through the process of anchoring application-specific tokens to an established, regulated stablecoin, the platform attempts to offer developers both credibility and speed-to-market. The framework is also designed to support multiple blockchain networks, which may broaden its utility as the multi-chain environment matures.
The collaboration brings together three distinct roles: PayPal as the underlying stablecoin issuer through PYUSD, M0 as the platform and interoperability layer, and MoonPay as the issuance and distribution infrastructure provider. This division of responsibilities reflects a modular approach to stablecoin infrastructure that is becoming more common as the market segments by use case.
