PayPal (PYPL) is expanding the role of its PYUSD stablecoin for financing artificial intelligence, connecting it to onchain financing mechanisms developed by USD.AI, a stablecoin protocol that provides credit to AI companies.
Loans issued by USD.AI to finance graphics processing units (GPUs), data centers and related AI infrastructure will be denominated in PYUSD, with borrowers able to receive proceeds directly into PayPal accounts, according to a statement shared with CoinDesk on Thursday.
The approach is intended to combine familiar payment workflows with programmable settlement suitable for long-term financing, leasing and new agent-driven transactions. It also shows how stablecoins can be used as instruments of settlement for capital-intensive industries beyond crypto.
Stablecoins provide the ability to move large sums of capital quickly and transparently while supporting automated payment logic tied to usage or contracts.
The move comes as demand for AI infrastructure increases. Morgan Stanley estimates that global AI computing spending could reach $6.7 trillion by 2029, putting pressure on traditional capital markets and payment systems. This year, capital spending on artificial intelligence will be about $360 billion, UBS said in May.
To encourage adoption, PayPal and the USD.AI Foundation plan to introduce a one-year customer incentive program offering 4.5% on up to $1 billion. USD in deposits from the beginning of January.
USD.AI secures more than $650 million in onchain, computational assets, turning GPUs into tokenized security.
