PayPal Partners with USD.AI to Fund AI Developments Using PYUSD Stablecoin

PayPal has partnered with USD.AI to use its PYUSD stablecoin to finance AI companies. USD.AI will provide loans in PYUSD for acquiring GPUs and developing data centers. The initiative aims to integrate stablecoin functionality into capital-intensive AI sectors, with borrowers receiving funds directly into their PayPal accounts.

Starting in January, the partnership will launch a customer incentive program offering 4.5% on deposits up to $1 billion for one year. PYUSD's adoption is growing, with its supply increasing to $3.8 billion and transactions rising by 150% to 1.8 million. PayPal's approach reflects a shift in stablecoin usage beyond cryptocurrency, addressing payment frictions while tapping into a booming AI market projected to reach $360 billion in capital expenditure this year.