Paypal Makes First Venture Investment Using Stablecoin PYUSD Into Mesh

Embedded finance platform Mesh has raised $6.5 million from Paypal’s venture arm to fuel the redesign of the modern financial user experience. 

The investment marks a milestone for Paypal as $5 million of it was made using the company’s USD-denominated stablecoin PYUSD – the first time the company has used their stablecoin in such a way. The investment can be verified on-chain and was made using Mesh’s own API. The rest of the $6.5 million investment was made using USD.

This strategic round follows a $22 million Series A in September 2023 from backers such as Money Forward, Galaxy Digital, Samsung Next, and more. 

Mesh’s embedded structure allows customers to connect multiple exchanges or wallets directly into their existing platform. 

Customers today can have dozens of financial accounts – brokerages, exchanges, wallets, etc – spanning both the TradFi and crypto ecosystems. Mesh’s platform creates a unified experience where customers can access and use their assets across multiple platforms. 

The company currently offers more than 300 integrations across TradFi and crypto.

Companies offering embedded financial products have been on the rise in recent years.

Online retailers are using tools such as Afterpay and Affirm to offer financing at the point of sale. Businesses offer their employees branded corporate cards using firms such as Brex and Ramp. And finance applications are able to connect in a single interface using Plaid.

Mesh aims to be the embedded financial product of the future – connecting the traditional finance world the crypto one.

Prior to building Mesh, Co-Founder and CEO Bam Azizi built NoPassword which was acquired by LogMeIn, the parent company of GoToMeeting and LastPass. 

By raising this $6.5 million round from PayPal, Mesh has brought on a strategic partner to help further their growth.