MoonPay and M0 unveiled PYUSDx on February 27, a new infrastructure platform that enables developers to launch application-specific stablecoins in just days rather than months. The framework is built on PayPal USD (PYUSD), providing a regulated foundation for businesses seeking to create branded digital dollars without navigating complex technical challenges. This move positions PYUSDx as a streamlined solution in the rapidly expanding stablecoin market.
The platform allows developers to leverage the trusted backing of PYUSD while building customized stablecoins tailored to specific ecosystems or applications. According to MoonPay Digital Assets Limited, which offers the independent issuance framework, PYUSDx significantly reduces both technical and operational complexity for builders entering the digital finance space.
Application-Specific Stablecoins Address Growing Market Demand
The stablecoin industry has experienced unprecedented growth in recent months. In early February, the total market capitalization crossed $300 billion, representing one of the strongest liquidity expansions in the sector’s history. Additionally, data indicates that the number of newly issued stablecoins with a supply exceeding $10 million increased by 89% in 2025 alone.
This explosive growth reflects rising demand for digital dollars that maintain stability by pegging their value to reserves, typically the U.S. dollar. While major players like Tether (USDT), USD Coin (USDC), and Dai (DAI) currently dominate the market, PayPal’s PYUSD has gained significant traction since its 2022 launch through Paxos, reaching an estimated market cap of approximately $4 billion.
Regulated Infrastructure Simplifies Development Process
Building and managing stablecoins traditionally requires substantial technical resources and regulatory expertise. However, PYUSDx addresses these challenges by providing pre-built infrastructure anchored by PayPal USD, which is issued by Paxos Trust Company, a federally regulated national banking association.
Ivan Soto-Wright, CEO and co-founder of MoonPay, noted that the platform reduces technical and operational complexity for developers. May Zabaneh, Senior Vice President and General Manager of Crypto at PayPal, emphasized that developers should not need to rebuild trusted monetary infrastructure from scratch when building differentiated experiences.
Early Adoption Shows Real-World Applications
The platform has already attracted its first developer, with USD.ai becoming the inaugural project to build on the PYUSDx framework. The company is using the infrastructure to power a stablecoin specifically designed for artificial intelligence infrastructure, demonstrating the platform’s versatility across emerging technology sectors.
Meanwhile, the collaboration between M0’s digital token platform and MoonPay’s distribution network offers developers built-in liquidity and rapid iteration capabilities. Luca Prosperi, CEO of M0, anticipates that most fintech developers will eventually utilize solutions like PYUSDx as the industry evolves toward more specialized financial products.
Distinct Framework With Important Limitations
It is important to note that PYUSDx tokens are issued by MoonPay Digital Assets Limited and differ from the original PayPal USD issued by Paxos. Consequently, these custom application-specific stablecoins are not supported for direct use within PayPal or Venmo accounts, despite being built on the PYUSD foundation.
In contrast to traditional stablecoin development timelines that can span months, PYUSDx compresses the process to just days. This acceleration enables businesses to respond quickly to market opportunities and test new payment models without extensive upfront investment in compliance and infrastructure.
The platform’s launch comes as businesses increasingly seek branded stablecoin solutions tailored to specific use cases. The regulated foundation provided by PayPal USD offers developers confidence in stability and compliance while maintaining flexibility in application design.
Further details about PYUSDx’s roadmap and additional developer partnerships have not been confirmed. The platform’s success will likely depend on adoption rates among fintech builders and the broader regulatory environment surrounding digital asset issuance in coming months.
