Key Takeaways
- Bybit’s payment service has joined forces with Mesh, enabling 80 million exchange users to make crypto purchases straight from their account balances
- The partnership eliminates the need to transfer or withdraw assets before completing transactions on Mesh-supported platforms
- Companies already integrated with Mesh can enable Bybit Pay without additional technical work
- Mesh’s infrastructure connects over 300 digital wallets, trading platforms, and financial services
- Following a $75 million funding round in January at a $1 billion valuation, Mesh is reportedly negotiating a Binance-backed investment at a $2 billion valuation
The payment division of cryptocurrency exchange Bybit has announced a collaboration with Mesh, a provider of crypto payment infrastructure. This partnership enables users of Bybit to make purchases using cryptocurrency stored directly in their exchange wallets on any platform that supports Mesh.
Previously, customers needed to complete multiple steps—withdrawing coins, manually converting currencies, or moving assets to external wallets—before they could complete a purchase. This new integration eliminates those intermediary steps.
Technical Details of the Partnership
On platforms powered by Mesh, users will see Bybit Pay among their payment choices at checkout. Selecting this option allows them to complete transactions using funds already held in their Bybit accounts, with no prior withdrawal necessary.
From the merchant perspective, implementation is straightforward. Organizations that have already integrated Mesh into their payment systems can simply activate Bybit Pay through their existing connection without requiring new technical development.
According to Bybit, merchants gain access to flexible settlement options through Mesh’s programmable tools, allowing them to specify when and how payments are processed across various markets. This means a buyer can pay with one cryptocurrency while the seller receives payment in a different asset, whether that’s a stablecoin or traditional fiat money.
The official announcement left several questions unanswered, including which specific digital currencies are accepted, what transaction costs users and merchants will face, and which geographic areas have access to the service. Additionally, merchants must actively opt in to accept Bybit Pay before their customers can utilize it.
Understanding Mesh’s Infrastructure
Mesh provides the underlying technology that bridges digital wallets, cryptocurrency trading platforms, and financial applications. The company’s network currently encompasses more than 300 different platforms.
Originally launched under the name Front Finance, the company has accumulated over $200 million in total investment capital. Dragonfly Capital led its January Series C funding round of $75 million, with participation from Coinbase Ventures, PayPal Ventures, and other investors.
According to an Axios report from July, Binance is negotiating to lead a new investment round in Mesh that would value the company at up to $2 billion. However, neither Binance nor Mesh has publicly confirmed these discussions.
The company has also made inroads into public sector payments. This past May, Bermuda implemented Stellar blockchain technology for government payment processing through a Mesh-powered integration.
While Bybit reports serving 80 million users, this number has not been independently audited or confirmed.
Important Tax Considerations for US Customers
The announcement does not clarify whether this Bybit Pay integration through Mesh will be accessible to users in the United States. While Bybit characterized the rollout as worldwide, no specific information about US availability was provided.
For US residents who have access to cryptocurrency payment platforms, every transaction can create a taxable event under federal law. The Internal Revenue Service classifies digital currencies as property rather than currency, which means using crypto for purchases constitutes a disposal subject to taxation.
Taxpayers are required to determine capital gains or losses by comparing the original cost basis of the asset against its fair market value when the transaction occurs. Documentation must capture the cryptocurrency type, quantity, USD equivalent, and precise transaction timestamp.
Additionally, broker reporting requirements are now in effect. Reporting of gross proceeds for covered cryptocurrency transactions became mandatory on January 1, 2025, while cost basis reporting requirements took effect on January 1, 2026.
The Bybit Pay integration through Mesh became operational for participating businesses on September 3, 2026.
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