Stablecoins continue to gain traction within the finance sector, with crypto payments network Mesh announcing an $82m Series B funding round.
This latest investment brings Mesh’s total funding to over $120m. To highlight the utility of stablecoins, most of the $82m investment was settled using PayPal USD (PYUSD), leveraging Mesh’s technology for asset transfers.
Bam Azizi, CEO and Co-Founder of Mesh, commented: “Stablecoins present the single biggest opportunity to disrupt the payments industry since the invention of credit and debit cards, and Mesh is now first in line to scale that vision across the world.
“With this funding, we’re expanding the first truly global crypto payments network – one that allows users to pay with any crypto they hold while ensuring merchants can settle in the stablecoin of their choice, just like they do with fiat today.”
Stablecoin adoption has surged in recent years. The market now exceeds a $200bn market cap, with transaction volumes surpassing $27.6trn in 2024. This fiat-backed cryptocurrency is proving especially valuable for cross-border transactions, offering the speed and security of blockchain while maintaining stability by being backed by traditional currencies like USD.
Banks and financial institutions, particularly in the US, have already announced interest in stablecoins. Typically, traditional institutions distanced themselves from crypto, but have warmed to stablecoins as they could act as a bridge between the two.
Brian Moynihan, CEO of Bank of America, said earlier this month that the bank will get involved in the stablecoin business once more legislation is passed.
The Series B round was led by Paradigm, with participation from Consensys (parent company of MetaMask), QuantumLight Capital (founded by Revolut CEO Nik Storonsky), Yolo Investments and others. Mesh had previously secured funding from investors such as PayPal Ventures, Galaxy Ventures and MoneyForward.
At the core of Mesh’s payments solution is its SmartFunding technology, designed to eliminate friction between users’ assets and merchants’ settlement processes. This allows customers to pay with cryptocurrencies like Bitcoin while merchants receive funds in stablecoins such as PYUSD – without requiring users to manually convert their assets beforehand.
“We think crypto and stablecoins will be an enormous transformation to payments,” Charlie Noyes, General Partner at Paradigm, added.
“Mesh makes paying with crypto as simple as using a credit card for users and merchants while preserving the benefits of transacting over blockchain rails.”
