Key Points
- Mesh has partnered with Reown to launch wallet ownership verification for UTXO-based assets, starting with Bitcoin.
- The verification feature aims to comply with the European Banking Authority’s Travel Rule Guidelines.
Mesh, a U.S. fintech company with backing from PayPal Ventures, has partnered with Reown, previously known as WalletConnect. Their collaboration aims to introduce wallet ownership verification for UTXO-based assets, with the first application in the Bitcoin (BTC) ecosystem.
Compliance with European Travel Rule Guidelines
According to a press release issued on November 11, Mesh stated that the new feature will enhance functionality and address the need to comply with the European Banking Authority’s Travel Rule Guidelines. These guidelines are due to take effect on December 30.
The Travel Rule is a mandate from the Financial Action Task Force. It compels crypto businesses to collect and share specific customer information for transactions over a certain limit, usually $1,000. This rule aims to prevent money laundering and illicit activities.
Industry Reactions
Jess Houlgrave, CEO of Reown, anticipates that the regulation will play a bigger role in the industry. He believes that forward-thinking organizations will lead the way. Bam Azizi, co-founder and CEO of Mesh, echoed this sentiment. He noted a significant market demand for wallet ownership verification solutions that adhere to EBA guidelines. He also stressed the importance of wallet interoperability in the future.
Mesh was founded in 2020 by Bam Azizi and Adam Israel. The company secured $22 million in a Series A funding round in September 2023, led by Money Forward and supported by other investors like Galaxy and Samsung Next. Following this, the startup also received funding from PayPal Ventures in the form of PayPal’s PYUSD stablecoin.
