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The proliferation of digital currencies presents their users an important task: How to convert one to another and into stablecoins. Mesh, a startup building a digital assets payments network, joins a field of firms offering a solution.

PayPal Holdings is using Mesh’s technology to power a new pay-with-crypto conversion tool to connect dozens of cryptocurrencies and stablecoins for shoppers and merchants. The capability will be rolled out in the U.S. in time for the 2025 holiday shopping season, a PayPal spokesperson said Wednesday in an email.

PayPal and Mesh, a startup in which PayPal’s venture arm has invested, touting savings for merchants below current international credit card conversion costs, in a July 28 press release announcing the new tool.

“You need to bridge the gap between what users have and what the merchant’s supposed to receive,” Mesh CEO Bam Azizi said in an Aug. 13 interview. The technology allows merchants to accept more than eight dozen flavors of crypto for payment, converting them into fiat. In the future, PayPal said it will let merchants settle with its PYUSD stablecoin, launched two years ago .

Stablecoins “are not made equal,” Azizi said. “So if you have USDC and the merchant wants USDT, you still need to convert it as an end user. That's not the most optimal way for users to pay for things.” (USDC is Circle Internet Group’s stablecoin while Tether issues USDT.)

For example, if numerous customers held Tether USDT and a seller wants another stablecoin, “they just simply click and pay, and we abstract all the complexity” of the transaction for a shopper and the conversion for a merchant, Azizi explained.

Stablecoins are typically pegged to a fiat currency such as the euro or U.S. dollar, making their value more stable than other digital assets like Bitcoin that frequently surge and decline.

San Francisco-based Mesh is building a payments network to connect crypto exchanges, digital wallets and financial services platforms to simplify digital currency payments and conversions. The company has about 100 employees.

“Don't forget that we have 650 million crypto owners (globally) and they have all sorts of assets, whether it’s NFT (non-fungible tokens) or tokenized real estate or collectibles or Bitcoin, Ethereum – you cannot ignore that population,” Azizi said. “They’re not going anywhere.”