PayPal’s PYUSD Stablecoin Fuels AI Infrastructure with 4.5% Yield

PayPal partners with USD.AI to use PYUSD stablecoin for financing AI infrastructure, offering programmable settlements and a 4.5% yield incentive on up to $1 billion in deposits starting January.

PayPal is expanding the use of its PYUSD stablecoin to finance artificial intelligence infrastructure through a partnership with USD.AI. This collaboration enables programmable settlement for purchases of GPUs and data-center costs, with loans issued in PYUSD and proceeds delivered directly into PayPal accounts. The initiative merges traditional payment workflows with blockchain-based programmable settlements, streamlining funding for AI companies and projects. To encourage adoption, PayPal and USD.AI will launch a one-year customer incentive program in early January, offering a 4.5% yield on deposits up to $1 billion. USD.AI already secures over $650 million in compute-backed assets, turning GPUs into tokenized collateral. This move highlights the growing demand for efficient, transparent, and programmable funding solutions in the rapidly expanding AI sector, and demonstrates a significant use case for stablecoins in large-scale, real-world investments.