Mesh, a crypto security startup, receives support from PayPal through its PYUSD stablecoin.
International payment giant PayPal has successfully completed its first investment using its stablecoin PayPal USD (PYUSD). In a press release issued on January 29, the company announced that its investment division, PayPal Ventures, has decided to support Mesh, a cybersecurity startup with a focus on cryptocurrencies. Mesh utilizes PYUSD, which is an Ethereum-based stablecoin. This move marks the first time that PYUSD has been used as a funding instrument, although specific financial details have not been disclosed. PayPal stated that the investment was made “almost entirely” in PYUSD, with funds transferred on-chain using Mesh’s APIs.
Mesh, established in 2020, acts as a fintech connection layer that enables enterprise clients to facilitate crypto payments, account aggregation, and trading across more than 300 platforms. This investment represents PayPal’s first use case of PYUSD for venture deals, despite the stablecoin attracting attention from US regulators. In November 2023, PayPal received an investigative subpoena from the US Securities and Exchange Commission (SEC) regarding its stablecoin, although the details of the investigation remain unclear.
PayPal launched PYUSD in August 2023 in collaboration with crypto infrastructure firm Paxos. The stablecoin is backed by US dollar deposits, short-term US Treasuries, and other cash equivalents to ensure stability. PYUSD allows users to convert digital currencies into US fiat, a feature that the company hopes will promote the adoption of stablecoins worldwide. The recent funding arrangement with Mesh indicates a more comprehensive approach to integrating web3, with PYUSD currently ranking eighth among the top ten stablecoins just a year after its launch, with an impressive market capitalization of $300 million.
