February 27, 2026 – MoonPay and M0 unveiled PYUSDx on Thursday in New York. In short, the new platform lets developers issue branded stablecoins backed by PayPal USD. As a result, it marks a major step in the race to lead stablecoin tools.
Currently, building custom stablecoins still takes months of work. However, PYUSDx aims to cut that timeline to just days. Because of this, fintechs and Web3 startups could rethink how they bring products to market.
Why Custom Stablecoins Matter Now
Demand for tailor-made digital dollars is rising fast. For instance, newly issued stablecoins with over $10 million in supply grew 89% in 2025. This growth shows a clear shift. In other words, developers no longer want generic tokens. Instead, they want coins built for their own platforms.
To solve this, PYUSDx combines M0’s token tools with MoonPay’s payment rails. Moreover, all tokens issued are fully backed 1:1 by PYUSD reserves. Paxos Trust Company, a federally regulated body, issues the core PYUSD asset. Therefore, this layered setup keeps rules clear for all parties.
What This Means for the Market
First, the launch pushes PayPal deeper into crypto tools. Rather than fighting Tether or Circle head-on, PayPal is letting others build on top of PYUSD. As a result, this approach could speed up PYUSD use across many sectors.
In addition, USD.ai is the first project built on PYUSDx. It focuses on AI payments and machine-to-machine transfers. Beyond that, MoonPay and M0 expect growth in gaming, money transfers, and built-in finance.
Furthermore, key features include multi-chain support, reserve reporting, and better pricing. These tools make it easier for developers who lack the means to build stablecoin systems on their own.
The Bigger Picture
Overall, the stablecoin market is splitting by design. Issuers are moving past one-size-fits-all tokens. Consequently, PYUSDx offers a regulated base with flexible layers on top. If growth holds at the 2025 pace, similar platforms could become the norm.
For now, this deal shows how old-guard finance and crypto firms are joining forces. PayPal brings the trust. MoonPay handles the reach. Meanwhile, M0 provides the tech. Together, they are betting that the next wave of stablecoin growth starts at the app layer.
