Modern embedded finance solution Mesh today announced an investment from PayPal Ventures.

PayPal Ventures’ investment was made almost entirely in PayPal USD (PYUSD), an Ethereum-based stablecoin that is 100% backed by U.S. dollars, short-term U.S. treasuries and similar cash equivalents.

This marks the first time that PYUSD has been used as the funding instrument for a PayPal Ventures investment since it was launched by PayPal in August 2023. The PYUSD funds were transferred on chain using Mesh’s Application Programming Interfaces (APIs).

The investment comes on the heels of Mesh’s $22 million Series A funding round, backed by new investors including Money Forward, Inc., Galaxy, and Samsung Next.

Mesh empowers businesses to integrate seamless and secure crypto transfers and payments directly into their existing platforms, eliminating the need for users to switch between platforms. Mesh was established in 2020 as an account aggregation platform and now has over 300 integrations with different exchanges, wallets and brokerages.

“We’re thrilled to have the backing of PayPal Ventures as we execute against our vision of becoming the connection layer for a critical mass of crypto platforms and financial service providers,” said Bam Azizi, Co-Founder and CEO of Mesh. “PayPal has an incredible track record of moving the payments industry forward, so it’s no surprise they are at the forefront of stablecoin innovation and share our vision for the future of the industry.”

“As the world of financial services undergoes rapid transformation, we believe that user ownership and portability of assets will become a critical building block of product innovation, with crypto serving as the first beachhead where this is possible,” said Amman Bhasin, Partner at PayPal Ventures. “Mesh’s commitment to these principles, coupled with its innovative technology, makes them a clear leader in this dynamic landscape. We are confident that this investment will fuel Mesh’s growth and contribute significantly to the advancement of embedded finance and native stablecoins.”