The onchain credit protocol announced a partnership with PayPal. The goal is to integrate PayPal USD or PYUSD as a settlement asset for AI infrastructure financing.
The goal is to make it easier for builders and companies to fund the hardware and services that power modern AI. The idea is to use stable digital dollars instead of complex banking setups.
Why PYUSD Matters for AI Financing
USDAI and PayPal are launching a customer incentive program. It offers a 4.5% return on up to 1 billion dollars in deposits. The program is expected to begin in January 2026 and will apply to all USDai deposits up to that cap. The incentive is designed to attract liquidity and help scale the use of stablecoins across AI driven payments, financing, and automated commerce.
USDAI is partnering with @PayPal to integrate $PYUSD as a settlement asset for AI infrastructure financing.
To support adoption, PayPal and USDAI are launching a customer incentive program offering 4.5% on up to $1 billion in USDai deposits, expected to begin in Jan 2026. pic.twitter.com/lwEKqum9mF
— USD.AI | Public Launch is Live (@USDai_Official) December 18, 2025
With this integration, USDAI can issue loans directly in PYUSD and settle them into PayPal accounts. That means a startup building an AI model can borrow funds onchain and pay real world expenses without jumping between systems. GPUs, data center space, rentals, and software subscriptions can all be paid using a single dollar based rail.
Also, USDAI is continuing its work with m0 as institutional stablecoin rails move deeper into onchain credit markets. Together, these efforts position GPUs as institutional grade collateral and place PYUSD and USDai at the center of global AI infrastructure finance.
More About PYUSD
PayPal is stepping into the next generation of shopping with its support for Google’s new Universal Commerce Protocol, or UCP. As AI agents increasingly help consumers search, compare, and decide what to buy, PayPal aims to make payments seamless, secure, and interoperable. With this collaboration, PayPal will soon be available as a payment option within Google’s AI-powered checkout, allowing merchants to sell products directly in Google Search and the Gemini app.
Excited to share @PayPal‘s support of @Google‘s Universal Commerce Protocol (UCP) as the next phase of our expanded partnership announced last fall.
This is a milestone moment making agentic commerce a reality for consumers.
Let’s go @sundarpichai! 🚀 pic.twitter.com/9QCZo04n67
— Alex Chriss (@acce) January 12, 2026
Michelle Gill, PayPal’s GM of Small Business and Financial Services, emphasized that building open and trusted infrastructure is key to the future of commerce. By joining UCP, PayPal is helping make agentic commerce—where AI guides purchasing decisions—safe, convenient, and widely accessible for consumers and businesses alike.