Polygon Labs Set to Acquire Coinme and Sequence in $250 Million Stablecoin Payments Initiative

Polygon Labs has entered into definitive agreements to acquire the U.S.-regulated payments company Coinme and wallet infrastructure provider Sequence for over $250 million. This move is part of Polygon's efforts to enhance its footprint in licensed stablecoin payments across the United States.

Key Takeaways

Polygon Labs is set to acquire Coinme and Sequence for over $250 million to enhance its stablecoin payment capabilities.
The acquisitions aim to establish a robust ecosystem, focusing on regulated fiat access and cross-chain payment infrastructure.
Coinme brings extensive U.S. licensing and a vast network of retail locations.
Sequence adds advanced wallet technology and simplifies cross-chain transactions for users.
Polygon aims to create an integrated payments platform for various financial institutions and merchants, promoting stablecoin utilization globally.

Polygon Launches Alpha Testnet of Zero-Knowledge Rollup Solution 'Miden'

In a recent press release shared with CryptoNews, Polygon indicated that these acquisitions are targeted at establishing three fundamental aspects of its upcoming Open Money Stack: regulated fiat on- and off-ramps, enterprise wallet infrastructure, and cross-chain orchestration through user intents.

Building a Regulated Foundation for Stablecoin Payments

Combined, Coinme and Sequence have already facilitated more than $1 billion in off-chain sales, along with over $2 trillion in on-chain value transfers, in collaboration with Polygon.

As the demand for payments services escalates, Polygon is well-positioned to harness an increase in on-chain activity and network fees, which will directly benefit its validators and stakers.

These acquisitions are particularly relevant as stablecoins are increasingly recognized as a reliable settlement layer for global payments, especially following recent advancements in U.S. federal stablecoin regulations.

Polygon's strategy involves harmonizing compliant fiat access with on-chain settlements at scale, paving the way for a vertically-integrated payments stack.

Coinme: U.S. Licensing and In-Person Distribution

Established in 2014, Coinme is one of the first licensed digital currency exchanges in the United States. The company possesses money-transmitter licenses that span 48 U.S. states and operates a fiat-to-crypto network across more than 50,000 retail outlets.

Coinme also offers regulated crypto-as-a-service solutions tailored for fintech companies and enterprises, in addition to its licensed wallet infrastructure, enterprise APIs, and SDKs.

Supported by notable investors such as Pantera, Digital Currency Group, Coinstar, Circle, and MoneyGram, Coinme caters to enterprise clients like Exodus, Coinstar, Mercuryo, and Baanx, as well as serving over one million retail customers.

Once regulatory approvals are obtained, Coinme will function as a wholly-owned subsidiary of Polygon Labs.

Sequence: Adding Smart Wallet and Cross-Chain Capabilities

Sequence enhances Polygon’s offerings with its smart wallet technology and an intuitive one-click cross-chain orchestration engine, simplifying payment processes for users. Its infrastructure allows for transactions across different blockchains without necessitating user management of bridges, swaps, or gas fees.

Investors like Brevan Howard Digital, Initialized Capital, Coinbase, Polychain, and Consensys back Sequence. It supports prominent ecosystems such as Polygon, Arbitrum, and Immutable and collaborates with Google Cloud as a distribution partner.

Sequence's Trails platform provides a universal framework for cross-chain transactions and interoperable stablecoin payments, including compatibility with Circle’s Cross-Chain Transfer Protocol.

The Vision Behind the Open Money Stack

By merging Coinme’s compliant fiat access with Sequence’s wallet and cross-chain functionalities, Polygon aspires to create an open, integrated payments platform addressing banks, fintech companies, enterprises, remittance services, and merchants.

The objective is to facilitate real-time, 24/7 stablecoin settlements, offering lower transaction fees while decreasing reliance on traditional correspondent banking and ensuring predictable pricing.

“Stablecoins are becoming a critical settlement layer for global payments, yet the underlying infrastructure remains scattered,” remarked Marc Boiron, the CEO of Polygon Labs.

Polygon's founder, Sandeep Nailwal, emphasized that the Open Money Stack presents a clear framework to handle trillions of dollars transacted on-chain while maintaining an open and interoperable network.

According to data from Dune, Polygon’s on-chain stablecoin supply is expected to reach around $3.3 billion by the end of 2025.