PayPal has expanded its stablecoin strategy with PYUSDx, a new issuance framework built with MoonPay and M0. The product targets developers who want app-specific dollar tokens without rebuilding reserve systems and tooling. The companies said the rollout is planned for next month, and they positioned it as an application-layer push.
After the announcement, the PYPL stock price recovered and was trading near $46, up about 1% on the day. This recovery comes after falling over 6% yesterday on reports that PayPal is not in active talks with Stripe despite the earlier announcements.
PYPL Stock price
PYUSDx aims to bring stablecoins into apps with faster launches
PayPal, MoonPay, and M0 said PYUSDx will help developers launch dollar-pegged tokens backed by PayPal USD. The firms described PYUSDx as a tokenization and issuance framework offered by MoonPay Digital Assets. They said it supports fast launches, cross-chain use, and branded token options for apps.
May Zabaneh, PayPal’s head of crypto, linked the product to developer demand for easier infrastructure. “The next phase of stablecoin adoption is happening at the application layer,” Zabaneh said. She added that developers want “differentiated experiences,” and they want trusted rails without rebuilding them.
According to the blog, the PYUSDx is separate from PayPal USD, and it is not the same token. PayPal USD, launched in August 2023, is issued by Paxos Trust Company and used as the reserve base in the new framework.
How the platform works and what it offers developers
The companies said PYUSDx combines M0’s universal stablecoin and token platform with MoonPay’s operational infrastructure. Consequently, the goal is to reduce technical and operational burdens for teams. As a result, due to the development, launches can happen in days rather than months.
The announcement listed cross-chain compatibility and reserve transparency as core features and listed flexible economics and branded stablecoin options for product teams. Reacting to the move, PayPal said it is “excited to see” partners use PYUSDx for app-focused tokens.
The firms stressed that PYUSDx tokens are not usable inside PayPal or Venmo wallets. The joint statement said these tokens cannot be used, sent, or stored in those accounts. That separation sets product limits, and it also sets clear boundaries for users.
First builder is USD.ai as stablecoin competition intensifies
USD.ai was named as the first developer building on PYUSDx, according to the announcement. USD.ai issues stablecoins and yield-bearing tokens, and it plans a purpose-built token for its AI infrastructure. As a result, this use case fits app-specific stablecoin needs.
The launch comes as stablecoin competition grows across fintech and big tech. The report referenced Meta as a firm planning stablecoin-based payments across Facebook, Instagram, and WhatsApp. PayPal’s approach centers on letting developers create tokens for closed or focused ecosystems.
PayPal has also pointed to expanding real-world use for PYUSD outside trading venues. A report said YouTube enabled US creators to accept payouts in PYUSD in late 2025. Consequently, that detail added context for PayPal’s broader push into stablecoin payments.
This launch is needed since, as we reported, PayPal missed its Q4 earnings and revenue estimates, raising concerns over slowing growth, weaker guidance, and user engagement trends. This launch, as a result, may boost the PayPal ecosystem back to its heights ahead of its CEO change in March.
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