Mesh, a crypto transfer startup, receives support from PayPal with its PYUSD stablecoin.
International payment giant PayPal has successfully made its first investment using its stablecoin PayPal USD (PYUSD). In a press release issued on January 29, PayPal Ventures, the investment branch of the San Jose-based payment company, announced its support for Mesh, a crypto-focused transfer startup that utilizes PYUSD, an Ethereum-based stablecoin. This marks the first time that PYUSD has been used as a funding instrument, with the investment being made primarily in PYUSD and transferred on-chain through Mesh’s APIs. The exact financial details have not been disclosed.
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 by PayPal represents the first use case of PYUSD for venture deals, despite the stablecoin attracting attention from U.S. regulators. In November 2023, PayPal received an investigative subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its stablecoin, although the details of the investigation remain unclear.
PayPal launched its stablecoin in August 2023 in partnership with crypto infrastructure firm Paxos. The stablecoin is backed by U.S. dollar deposits, short-term U.S. Treasuries, and other cash equivalents to ensure stability. PYUSD allows users to convert digital currencies into U.S. fiat, a feature aimed at promoting stablecoin adoption globally. The investment in Mesh signifies a broader approach to integrating web3, with PYUSD currently ranked eighth among the top ten stablecoins just one year after its launch, boasting an impressive $300 million market capitalization.
