PayPal Ventures uses its stablecoin for investment in crypto transfer platform Mesh

The news follows on PYUSD deployment proposals on Aave and Curve


Benny Marty/Shutterstock modified by Blockworks


Back in August, PayPal introduced a new stablecoin onto the market called PYUSD, leading to a flurry of analysis and speculation about the asset’s utility in the Web3 space. Recently, attention has turned toward the stablecoin’s application in venture capital investments.

PayPal announced on Monday a $6.5 million investment in Mesh, a company specializing in enhancing digital transaction security and efficiency. $5 million of the investment was paid out in PYUSD.

This marks PayPal Ventures’ first known crypto investment since May 2023, when it invested in Magic Labs, a service focused on providing secure and user-friendly digital wallet solutions.

Read more: Crypto Funding: Wallet provider Magic Labs takes the cake in $126M week

Mesh is building a product for users to move crypto between different financial accounts and wallets. Fellow investor Galaxy likened Mesh to “Plaid but with the read, write and transfer capabilities.”

PayPal Ventures’ reason for making the investment in stablecoins as opposed to fiat was not immediately clear. 

Mesh co-founder and CEO Bam Azizi said he was “thrilled” when PayPal Ventures approached him about making the investment largely in PYUSD.

“When compared to alternative payment methods [like] wire transfers, PYUSD is superior because it works 24/7 and has a very low cost. This was also a great opportunity for us to demonstrate the security and robustness of Mesh API and that the vision for both companies is perfectly aligned,” Azizi said in an email.

Read more: 2024 will be the year for stablecoins

“This is a big moment for the company and one Galaxy is excited to be a part of,” was all Galaxy wrote on the subject of PayPal’s PYUSD investment. 

The venture investment is the latest in what has been a mostly-quiet rollout for PYUSD following a good amount of fanfare at release. In December and January, a contractor hired by PYUSD issuer Paxos proposed deployments for PayPal’s stablecoin on DeFi protocols Aave and Curve.

Read more: PayPal stablecoin deployment on Aave sought by Paxos

Despite nearly doubling its market capitalization since early December, PYUSD remains just the eleventh-largest stablecoin, according to CoinGecko. PayPal’s stablecoin suffers partly from not being a first mover in a space where assets like USDT and USDC can be attractive to investors for their deep liquidity. 

It’s also unclear where PYUSD stands on PayPal’s priority list. Some speculated further PYUSD development was on the way after new PayPal CEO Alex Chriss promised to “shock the world” with PayPal’s new products in a CNBC interview.

The eventual announcement video was mostly AI-focused and didn’t contain any mention of PYUSD. PayPal did not return a request for comment.

Updated Jan. 29, 2024 at 3:49 pm ET: A previous version of this article stated that Mesh was already a part of PayPal Ventures’ portfolio. A modification was made to clarify that PayPal and PayPal Ventures are distinct.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg


The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.


Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral



Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM


The side events were the places to be at Consensus 2024, according to attendees


Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them


I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right


Also, the ETF hype train can count out at least one member