What You Need to Know:
- Crypto payments firm Mesh has raised $82 million in a series B funding round to expand its global stablecoin-based payment settlement network.
- The majority of the funding was raised using PayPal’s PYUSD stablecoin.
- Mesh is constructing a network that allows users to pay with cryptocurrencies while merchants settle transactions in stablecoins.
Crypto payments firm Mesh announced on Tuesday that it has raised $82 million to further develop its global payments network centered around stablecoins.
The series B round was spearheaded by Paradigm, with participation from ConsenSys, QuantumLight, Yolo Investments, Evolution VC, Hike Ventures, Opportuna, and AltaIR Capital. Most of this fundraising was concluded in PayPal’s PYUSD stablecoin, according to a press release.
Mesh specializes in creating a payment system on a blockchain framework that connects crypto wallets with payment service providers for vendors. With Mesh, users are empowered to pay with cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana’s SOL, while merchants finalize payments using stablecoins that include Circle’s USDC, PayPal’s PYUSD, and Ripple’s RLUSD.
“Regulatory clarity is coming along, institutions are getting involved, and the trend for stablecoins is on the rise,” said Bam Azizi, CEO and cofounder of Mesh, in a LinkedIn post. “With this funding, we aim to expand globally to make crypto payments as simple as using a credit card.”
Stablecoins represent one of the fastest-growing areas in the crypto market, evolving into a $200 billion asset class within digital assets. As these currencies are pegged to an external asset, mainly the U.S. dollar, they play a crucial role in the trading of digital assets.
Thanks to the swift growth, venture capital firms are increasingly investing in projects that develop stablecoin services and infrastructure. Felix Hartmann, founder and managing partner at Hartmann Capital, highlighted in a recent report that the “big trade in crypto” involves stablecoins, predicting that they, alongside tokenized financial assets, will drive the next wave of growth in digital asset adoption.
Last year, the acquisition of the stablecoin platform Bridge by payments giant Stripe for $1.1 billion underscored the significant potential of stablecoins in the international payments arena.
