PayPal plans to use PYUSD to support artificial intelligence-driven credit and finance developments

PayPal has announced that its stablecoin, PYUSD, will be used to fund AI companies through a partnership with USD.AI. USD.AI will utilize PYUSD to provide AI companies with credit and financing for GPUs and data centers.

PayPal, a popular international online payment system and digital wallet, has announced its intention to extend PYUSD stablecoin usage into the AI sector. The company announced it intended to link the stablecoin to blockchain funding mechanisms developed by USD.AI, a Web3 protocol that offers loans to AI developers.

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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