PayPal Ventures, the venture capital arm of PayPal, has announced its investment in Mesh, an Embedded Finance solution for digital asset transfers. The investment was made using PayPal USD, the company’s US dollar-denominated stablecoin. Mesh focuses on simplifying digital asset transfers and account aggregation, and the investment solidifies the company’s position in the market.
The investment in Mesh was made using PayPal USD, an Ethereum-based stablecoin backed by US dollars. This is one of the first instances in which PYUSD has been used as the funding instrument for a PayPal Ventures investment. The funds were transferred on-chain to Mesh using the company’s APIs.
Mesh raised $22 million in a Series A funding round in September 2023, led by Money Forward and with participation from companies such as Galaxy, Samsung Next, and SNR VC. The funding was intended to develop tools for deposits, payments, and payouts, and assist with go-to-market operations.
Currently, Mesh allows businesses to integrate secure crypto transfers and payments directly into their existing platforms, eliminating the need for users to move between platforms. The company aims to become the connection layer between crypto platforms and financial service providers.
PayPal’s investment in Mesh is part of the company’s commitment to the digital payments landscape. PayPal believes that user ownership and portability of assets, with crypto playing a significant role, will become an important part of product development in the financial services industry.
By investing in Mesh, PayPal aims to contribute to the development of Embedded Finance and native stablecoins, while also supporting the growth of Mesh and the use of stablecoins in general.
