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

Connectivity layer Mesh has entered into a partnership with Reown for wallet ownership verification, beginning with the Bitcoin ecosystem.

Mesh, a U.S. fintech whose investors include PayPal Ventures, has joined forces with Reown (formerly WalletConnect) to launch wallet ownership verification for UTXO-based assets, beginning with Bitcoin (BTC).

In a Nov. 11 press release, Mesh said 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 Dec. 30.

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

Mesh

The Travel Rule is a regulation from the Financial Action Task Force requiring crypto businesses to collect and share specific customer information for transactions over a certain threshold, typically $1,000 in bid to prevent money laundering and illicit activities.

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

Founded in 2020 by Bam Azizi and Adam Israel, Mesh secured $22 million in a Series A funding round in September 2023. That capital infusion, led by Money Forward and supported by other investors including Galaxy and Samsung Next. Subsequently, the startup also secured funding from PayPal Ventures in the form of PayPal’s PYUSD stablecoin.