PayPal, MoonPay, and M0 Unveil PYUSDx Framework for Custom Stablecoins
PYUSDx lets developers create custom stablecoins backed by PayPal's PYUSD. MoonPay and M0 power the framework — here's how it reshapes DeFi.
Payments giant PayPal, infrastructure provider MoonPay, and fintech platform M0 have announced PYUSDx — a new product that will allow developers to issue custom stablecoins built on top of PayPal USD (PYUSD) for specific ecosystems and applications. The platform is scheduled to launch next month.
How PYUSDx Works
PYUSDx is a tokenization framework that operates separately from the original PYUSD stablecoin. Tokens created through the platform will not be compatible with standard PayPal or Venmo accounts — they cannot be stored or transferred through those services.
The tool combines M0's smart contracts with MoonPay's infrastructure. Its primary goal is to reduce the technical burden on developers, eliminating the need to build payment architecture from scratch for every new application.
Key features highlighted by the creators include:
- rapid deployment of new stablecoin tokens;
- cross-chain compatibility;
- transparent reserve management;
- custom branding capabilities for issued stablecoins.
The first client to use the platform will be DeFi protocol USD.ai, which plans to issue a specialized stablecoin designed for artificial intelligence infrastructure.
Beyond PYUSDx, PayPal continues to expand real-world use cases for its base PYUSD stablecoin. In late 2025, YouTube began allowing US-based content creators to receive payouts in PYUSD.
SBI Holdings Prepares Yen-Pegged Stablecoin JPYSC
Japanese financial conglomerate SBI Holdings and Web3 firm Startale Group have introduced JPYSC, a stablecoin pegged to the Japanese yen. Development began in December 2025, with launch anticipated between April and June.
SBI Shinsei Trust Bank will serve as the token's issuer, operating under Japan's digital asset regulations. Distribution will be handled by crypto exchange SBI VC Trade, while Startale will manage the technical implementation.
JPYSC is positioned as a regulated alternative to dollar-denominated stablecoins. The asset targets institutional players and is designed for on-chain payments and cross-border settlements. The development team also envisions using the token for micropayments between AI agents.
Why This Matters
The stablecoin market is experiencing significant momentum — in January, stablecoin transfer volume exceeded $10.5 trillion, marking the highest level since April 2022. Against this backdrop, major financial players from PayPal to SBI Holdings are deepening their involvement in the segment, offering both developer-facing infrastructure tools and nationally anchored stablecoins tied to local currencies.
The launch of PYUSDx could reshape how specialized stablecoins are built by lowering the barrier to entry for developers. Meanwhile, SBI Holdings' regulated yen stablecoin reinforces a growing trend toward diversification in a market long dominated by dollar-pegged tokens.
Frequently Asked Questions
What is PYUSDx and how does it work?
PYUSDx is a tokenization framework by PayPal, MoonPay, and M0 that allows developers to issue custom stablecoins built on top of PayPal USD (PYUSD) for specific ecosystems and applications. It combines M0's smart contracts with MoonPay's infrastructure and operates separately from the original PYUSD stablecoin.
When will PYUSDx launch?
PYUSDx is scheduled to launch next month. The first client to use the platform will be DeFi protocol USD.ai, which plans to issue a specialized stablecoin designed for artificial intelligence infrastructure.
How is PYUSDx different from PYUSD on PayPal and Venmo?
Tokens created through PYUSDx will not be compatible with standard PayPal or Venmo accounts — they cannot be stored or transferred through those services. PYUSDx operates as a separate tokenization framework from the original PYUSD stablecoin.
What is SBI Holdings' JPYSC stablecoin?
JPYSC is a stablecoin pegged to the Japanese yen, developed by SBI Holdings and Startale Group. It will be issued by SBI Shinsei Trust Bank under Japan's digital asset regulations and is designed for on-chain payments, cross-border settlements, and micropayments between AI agents. Launch is anticipated between April and June.
How much stablecoin transfer volume was recorded in January?
In January, stablecoin transfer volume exceeded $10.5 trillion, marking the highest level since April 2022.
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