PayPal-backed Mesh teams up with Reown to verify Bitcoin wallets for Travel Rule

Mesh Partners with Reown for Wallet Ownership Verification, Starting with Bitcoin Ecosystem

Mesh, a U.S.-based fintech backed by investors including PayPal Ventures, has teamed up with Reown (formerly WalletConnect) to launch wallet ownership verification for UTXO-based assets, starting with Bitcoin. The announcement was made in a press release on November 11.

Mesh stated that the wallet ownership feature enhances functionality and addresses the “need to comply with the European Banking Authority’s Travel Rule Guidelines,” which are set to take effect on December 30.

“Compliance with the Travel Rule can be a significant challenge for crypto businesses, as it requires secure data exchange between different providers,” Mesh explained in the press release.

The Travel Rule is a regulation from the Financial Action Task Force (FATF), which requires crypto businesses to collect and share specific customer information for transactions exceeding a certain threshold, typically $1,000, in an effort to prevent money laundering and illicit activities.

Reown CEO Jess Houlgrave commented that the regulation will play a “larger role in our industry,” adding that forward-thinking organizations “are going to lead the way.” Meanwhile, Mesh co-founder and CEO Bam Azizi emphasized the “tremendous market demand” for wallet ownership verification solutions that comply with the EBA guidelines, highlighting that wallet interoperability will be crucial moving forward.

Founded in 2020 by Bam Azizi and Adam Israel, Mesh raised $22 million in a Series A funding round in September 2023. The round was led by Money Forward, with additional support from investors like Galaxy and Samsung Next. Mesh also received investment from PayPal Ventures in the form of PayPal’s PYUSD stablecoin.