PYUSD Integration and Incentive Program

PayPal, Inc. (“PayPal”) and Permian Labs Inc. (“Permian”), the developer and core service provider to the USD.AI Foundation, announced a new partnership that will enable the future of AI infrastructure procurement by backing USDai with PayPal USD (“PYUSD”). By establishing interoperability between the two stablecoins, the two companies are helping AI companies settle infrastructure costs with stable, programmable digital dollars while managing data-center capital expenditures (CapEx), rental payments, and upcoming agent-driven payment flows.

Morgan Stanley estimates that AI infrastructure spending will reach $6.7 trillion by 2029. As AI operators expand GPU fleets and ongoing compute usage, demand is rising for dollar-denominated settlement rails that can move capital with speed, precision, transparency, and global reach. Having been developed with commerce as a core tenet, PYUSD serves as a natural settlement layer for AI infrastructure financing. Its programmable design supports automated payments and fits cleanly with the multi-year cycles behind USD.AI’s multi-year loan structures and the growing needs of AI capex. To encourage ecosystem adoption, PayPal and the USD.AI Foundation will introduce a customer incentive program offering 4.5% on up to $1 billion in deposits. The program is expected to launch in early January, and will last for a year.

“PYUSD was built to power real-time, programmable payments, and this partnership extends that vision into one of the fastest-growing segments of the digital economy: AI infrastructure. By working with Permian Labs, we’re helping ensure that AI-driven applications have access to stable, trusted settlement infrastructure.”

— David Weber, Director of PYUSD Ecosystem Development, PayPal

The partnership streamlines how AI companies access dollar liquidity for GPU purchases and operating expenses. Loans issued by USD.AI will be available in PYUSD, and borrowers will be able to receive proceeds directly into their PayPal accounts. This mirrors the ease of PayPal’s existing merchant workflows while introducing programmable settlement suitable for rentals, subscriptions, and agent-initiated transactions.

Backed by USD.AI’s GPU financing protocol, which currently secures over $650 million in on-chain compute-backed assets, the program provides:

• Universal integration rails for PYUSD and USDai across apps, websites, and enterprise workflows
• Instant settlement and auditability backed by tokenized real-world compute assets
• Programmable agentic payment flows, enabling AI agents to transact autonomously under the nascent x402 payment standard
• DeFi compatibility, allowing PYUSD and USDai to serve as trusted collateral, liquidity primitives, and yield instruments

This collaboration integrates PYUSD and USD.AI into a unified model for AI infrastructure finance, enabling stablecoin settlement for compute procurement, long-term financing and agent-driven payment.

“Demand for AI compute is doubling roughly every six months, and GPU capacity shortages are driving billions in new financing needs across the ecosystem. By partnering with PayPal, we’re positioning USDai and PYUSD as the settlement layer for this acceleration, from GPU mortgages to automated agent-driven payments.”

– David Choi, CEO of Permian Labs

As GPU financing ramps, USD.AI and PayPal will collaborate to support:

• PYUSD-settled GPU mortgages and equipment loans
• Data-center CapEx financing and operating expenses
• Rental and subscription payments for compute capacity
• Merchant connectivity so borrowers can receive PYUSD directly into PayPal business accounts

This aligns with USD.AI’s ongoing work in transforming GPUs into onchain collateral instruments to finance AI infrastructure globally, while expanding the scope of the protocol toward AI-powered payments, subscriptions and rental agreements.

About Permian Labs

Permian Labs is the developer of the USD.AI Protocol and service provider to the USD.AI Foundation. Permian supports compute-backed financing markets, enabling AI operators worldwide to access blockchain-based capital for GPU deployment, infrastructure expansion, and AI-native financial operations.

About the USD.AI Foundation

The USD.AI Foundation is a Cayman Islands foundation company dedicated to fostering, developing, and governing the USD.AI Protocol, a synthetic dollar system that transforms GPUs into collateral, enabling transparent, permissionless financing for AI infrastructure globally.