In a move to democratize the stablecoin marketplace, PayPal, in partnership with crypto payment provider MoonPay, has introduced PYUSDx, a new platform designed to enable developers to effortlessly create custom stablecoins tied to the PYUSD stablecoin anchor. This groundbreaking venture, which was unveiled on February 27, aims to significantly reduce the time required for token generation from a few months to just a few days. Leading the charge is USD.ai, which has utilized PYUSDx for the creation of a specialized stablecoin optimized for AI-centric ecosystems.
The PYUSDx framework provides a suite of tools that empower developers to produce application-specific stablecoins, thereby reinforcing PayPal's position as a leader in the field of digital asset innovation. The platform's architecture includes user-friendly features intended to simplify the technical complexities, thereby facilitating a rapid and smooth entry of new offerings into the market. Noteworthy capabilities of PYUSDx encompass cross-chain interoperability and the capability for open on-chain reserve audits.
Backing the core PYUSD stablecoin is the Paxos Trust Company, with MoonPay Digital Assets Limited rolling out the various PYUSDx extensions. It is important to note that these extensions differ from PayPal's own in-house stablecoin and do not function within PayPal or Venmo’s digital wallets. Commencing in April 2025, holders of PYUSD began earning an annual yield of 3.7%, which has boosted its attractiveness following PYUSD’s integration with platforms such as Stellar and Arbitrum, enhancing transaction speed and reducing associated costs.
PayPal’s foray and ongoing investment in the DeFi ecosystem underscores its commitment to creating easily accessible financial tools, positioning itself in line with the explosive fintech innovation trajectory that witnessed a remarkable 89% increase in stablecoins with a market cap exceeding $10 million by the year 2025. This joint endeavor from PayPal and MoonPay represents a major advancement in enabling developers to craft unique and innovative digital finance solutions.
