PayPal Ventures has announced that it has invested in embedded finance firm Mesh using its own digital currency.

Mesh, launched in 2020 as an account aggregation firm, supports businesses in integrating crypto transfers and payments into existing platforms.

PayPal's investment was made almost entirely using PayPal USD (PYUSD), its US dollar denominated stablecoin.

The move marks the first time the Ethereum-based stablecoin has been used By PayPal Ventures for an investment since the currency was launched last August.

The PYUSD funds were transferred on chain using Mesh APIs.

"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."

The investment follows Mesh's $22 million Series A funding round, backed by new investors including Money Forward, Inc, Galaxy, and Samsung Next.

"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 chief executive 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."

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