PayPal Bets Big: PYUSD to Fuel AI-Powered Credit and Finance Revolution
PayPal is putting its stablecoin where its mouth is. The payments giant is steering its PYUSD directly into the engine of next-generation finance—artificial intelligence.
The AI Credit Machine
Forget slow, manual approvals. The plan is to leverage PYUSD's programmable, blockchain-native nature to feed real-time transaction data into AI models. These systems could then assess creditworthiness in milliseconds, tailor loan offers on the fly, and manage risk with a precision that makes traditional credit scores look like cave paintings.
Finance Gets a Software Update
This isn't just about faster loans. It's a full-stack overhaul. Imagine AI-driven micro-investments automatically executed with PYUSD, or dynamic treasury management for businesses that reacts to market shifts instantly. The stablecoin becomes the perfect, frictionless settlement layer for a finance sector running on algorithmic intelligence.
Of course, handing the keys to the credit kingdom to algorithms will have regulators sweating through their suits—a classic case of innovation sprinting ahead of the rulebook. One cynical observer might note it's a brilliant way to create a captive, data-rich ecosystem, because in fintech, if you're not mining the data stream, you're probably paying to drink from it.
The move signals a stark truth: the future of finance won't be built on legacy rails. By aligning PYUSD with AI, PayPal isn't just adopting a new tech trend; it's attempting to code the very rules of the next financial system.
USD.AI to use PayPal’s stablecoin PYUSD to finance AI companies
The AI credit firm will disburse loans in PYUSD to companies for the purchase of graphics processing units (GPUs), data center development, and the construction of other AI-related infrastructure. Debtor organizations and companies that apply for the loans will receive the proceeds in the FORM of PYUSD directly into their PayPal accounts.
The two entities intend to combine commonly used payment frameworks with programmable settlements designed to facilitate long-term credits, rentals, and upcoming agent-driven transactions.
The duo has also pledged to offer 4.5% on deposits totaling $1 billion as a customer incentive program to attract more customers. The incentive program will commence in early January and last for one year.
PayPal’s PYUSD has witnessed significant adoption. According to a previous report by Cryptopolitan, dated December 3, PYUSD’s supply increased by $1.2 billion in September to $3.8 billion. The number of transactions powered by the stablecoin also increased by 150% to 1.8 million. Despite being new in the stablecoin market compared to Tether’s USDT and Circle’s USDC, PYUSD ranked second among the fastest-growing stablecoins in Q3 2025.
The PayPal-USD.AI approach redefines the usage of stablecoins outside the crypto ecosystem to fund capital-intensive sectors, such as AI. Notably, stablecoins now rank among the top three drivers of Web3 gaming infrastructure.
A recent report by the Blockchain Gaming Alliance (BGA) revealed that stablecoins have achieved such prominence, causing a transformative shift in the Web3 gaming ecosystem. Stablecoins now offer gaming developers in Web3 a chance to create in-built, self-sustaining, income-generating systems.
PayPal partners with OpenAI to roll out payment solutions on ChatGPT
PayPal’s reforms come amid the growing global demand for AI and AI infrastructure. Cryptopolitan recently reported that the global payment platform joined forces with AI pioneer OpenAI in late October to integrate its payment systems directly within ChatGPT. The AI model now offers users a direct payment option through ChatGPT, allowing them to pay without leaving the platform.
The partnership puts PayPal at the center of OpenAI’s primary objective to transform ChatGPT into a shopping hub. Under the agreement, PayPal will also handle technical tasks, such as routing merchants and verifying payments for PayPal sellers on the LLM. On the other hand, PayPal employees WOULD utilize AI tools to complete tasks more efficiently and accelerate the development of new payment products.
In May, the Global Wealth Management firm UBS predicted that global AI capital expenditure (capex) spending will grow by 60% to $360 billion this year, before recording another 33% surge to $480 billion in 2026. PayPal recently applied to the Federal Deposit Insurance Corporation and authorities in Utah to establish PayPal Bank.
Global banking institutions have also expressed interest in developing stablecoin frameworks to facilitate cross-border transactions at a cheaper and faster rate. SoFi Bank is among the latest financial institutions to launch stablecoin developments.
The company announced the launch of SoFiUSD, a dollar-backed stablecoin that operates on a permissionless blockchain. The company admitted that the stablecoin is currently being used to run internal operations, but urged that SoFiUSD will be available to its users in the coming months.
Other banks in Europe have also teamed up to develop a stablecoin pegged to the Euro. The banking organizations aim to create a regulatory-approved stablecoin for settling international remittances.
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