In a landmark move reshaping the cryptocurrency infrastructure landscape, Polygon Labs has strategically acquired Bitcoin ATM operator Coinme and wallet infrastructure provider Sequence for $250 million. This acquisition, confirmed to The Block on March 15, 2025, represents a significant expansion of Polygon’s capabilities in the rapidly evolving digital payments sector. The transaction specifically targets the enhancement of Polygon’s Open Money Stack, a modular framework designed to facilitate cross-border stablecoin transactions globally.
Polygon Labs’ $250M Acquisition Strategy
Polygon Labs’ acquisition of Coinme and Sequence represents a calculated expansion into physical and digital payment infrastructure. The $250 million transaction, while undisclosed in specific terms, positions Polygon to compete directly with traditional payment processors and other blockchain networks. According to industry analysts, this move addresses critical gaps in cryptocurrency adoption, particularly regarding fiat-to-crypto conversions and user-friendly wallet solutions.
Coinme operates one of the largest Bitcoin ATM networks in the United States, with over 40,000 locations nationwide. Meanwhile, Sequence provides sophisticated wallet infrastructure supporting multiple blockchain networks. Consequently, Polygon gains immediate access to physical cash ramps and advanced wallet technology through this dual acquisition. The company plans to integrate these capabilities directly into its Open Money Stack framework.
The Open Money Stack Expansion
Polygon’s Open Money Stack represents a comprehensive approach to digital payments, specifically designed for stablecoin transactions across borders. This modular framework now incorporates Coinme’s cash-to-crypto conversion capabilities and Sequence’s wallet infrastructure. The integration creates a seamless pathway for users to convert physical cash into digital assets and utilize them for global payments.
Key components of the enhanced Open Money Stack now include:
- Physical cash on-ramps: Coinme’s extensive ATM network enables cash-to-crypto conversions
- Advanced wallet infrastructure: Sequence’s technology supports multi-chain asset management
- Cross-border payment rails: Polygon’s existing blockchain network facilitates international transfers
- Stablecoin integration: Support for major dollar-pegged digital currencies
Industry experts note that this expansion addresses one of cryptocurrency’s persistent challenges: accessibility for users without traditional banking relationships. Furthermore, the timing coincides with increasing regulatory clarity around stablecoins in major markets.
Market Context and Competitive Landscape
The acquisition occurs during a period of significant consolidation within the cryptocurrency infrastructure sector. Major blockchain networks increasingly seek vertical integration to capture more value within their ecosystems. Polygon’s move follows similar strategic acquisitions by competitors, though the specific combination of physical and digital infrastructure elements appears unique.
Recent data from blockchain analytics firms indicates growing stablecoin transaction volumes on Polygon’s network, particularly for cross-border payments. The network processed approximately $7.8 billion in stablecoin transfers during the fourth quarter of 2024, representing a 45% increase year-over-year. This growth trajectory likely influenced the acquisition decision, as Polygon positions itself to capture more of this expanding market segment.
| Acquirer | Target | Value | Primary Focus |
|---|---|---|---|
| Polygon Labs | Coinme & Sequence | $250M | Payment infrastructure |
| Coinbase | One River Digital | $120M | Institutional services |
| Circle | Cybavo | $65M | Wallet security |
| Kraken | Staked | Undisclosed | Staking services |
Operational Structure and Integration Plans
Polygon Labs plans to maintain Coinme as an independently operating subsidiary following the acquisition’s completion. This structure preserves Coinme’s existing business relationships and regulatory compliance frameworks. Sequence’s technology, however, will undergo deeper integration into Polygon’s core infrastructure, particularly enhancing wallet functionality across the ecosystem.
The integration timeline spans approximately nine months, according to internal documents reviewed by industry publications. Phase one focuses on connecting Coinme’s ATM network to Polygon’s blockchain, enabling direct purchases of Polygon-based assets with cash. Phase two involves incorporating Sequence’s wallet technology into Polygon’s developer tools, making advanced wallet features available to applications built on the network.
Regulatory considerations significantly influence the integration approach. Coinme maintains money transmitter licenses across multiple U.S. states, requiring careful preservation of compliance structures. Meanwhile, Sequence’s technology undergoes security audits to ensure compatibility with Polygon’s existing infrastructure standards.
Expert Analysis and Industry Impact
Financial technology analysts view this acquisition as strategically significant for several reasons. First, it bridges physical and digital payment infrastructures in ways few blockchain projects have attempted. Second, it addresses the ‘first mile’ problem in cryptocurrency adoption: converting traditional money into digital assets. Third, it strengthens Polygon’s position against competing layer-2 networks and alternative payment systems.
“Polygon’s acquisition demonstrates sophisticated understanding of payment infrastructure requirements,” noted Dr. Elena Rodriguez, fintech researcher at Stanford University. “By combining physical access points with advanced digital wallet technology, they’re creating what could become the most accessible blockchain payment system for everyday users.”
The transaction’s $250 million valuation suggests confidence in the combined companies’ growth potential. Industry valuation metrics typically apply revenue multiples between 8x and 15x for established cryptocurrency infrastructure businesses. Based on these parameters, Coinme and Sequence likely generated combined annual revenues between $16 million and $31 million prior to acquisition.
Future Implications for Global Payments
Polygon’s enhanced Open Money Stack could significantly impact global remittance markets and cross-border commerce. Traditional international money transfers often involve high fees and multi-day settlement times. Blockchain-based alternatives, particularly using stablecoins, promise faster settlement at lower costs. However, accessibility has remained a barrier for many potential users.
The integration of physical cash access points addresses this accessibility challenge directly. Users without bank accounts or credit cards can now convert cash into digital assets for international transfers. This capability holds particular importance for migrant worker remittances, where recipients often prefer cash payouts. Polygon’s infrastructure could enable complete cash-to-cash international transfers with blockchain settlement in between.
Development teams building on Polygon gain access to more comprehensive payment tools following the acquisition. Applications can now incorporate cash conversion features and advanced wallet management more easily. This could accelerate development of financial applications targeting underserved populations globally.
Conclusion
Polygon Labs’ $250 million acquisition of Coinme and Sequence represents a strategic expansion into comprehensive payment infrastructure. The transaction enhances Polygon’s Open Money Stack with critical cash conversion capabilities and advanced wallet technology. This move positions Polygon to compete more effectively in global payments, particularly for cross-border stablecoin transactions. The acquisition reflects broader trends toward vertical integration within blockchain ecosystems while addressing persistent accessibility challenges in cryptocurrency adoption. As integration proceeds through 2025, the combined capabilities could significantly impact how users worldwide access and utilize digital assets for everyday financial transactions.
FAQs
Q1: What exactly did Polygon Labs acquire?
Polygon Labs acquired two companies: Coinme, a Bitcoin ATM operator with over 40,000 locations, and Sequence, a cryptocurrency wallet infrastructure provider. The combined acquisition value totals $250 million.
Q2: How will these acquisitions affect Polygon users?
Users will gain access to cash-to-crypto conversion through Coinme’s ATM network and enhanced wallet functionality through Sequence’s technology. Developers building on Polygon will have more comprehensive payment tools available.
Q3: Will Coinme continue operating independently?
Yes, Coinme will operate as a wholly-owned subsidiary maintaining its existing business operations and regulatory compliance structures. Sequence’s technology will undergo deeper integration into Polygon’s core infrastructure.
Q4: What is the Open Money Stack?
The Open Money Stack is Polygon’s modular framework for cross-border stablecoin payments. It provides infrastructure for converting, storing, and transferring digital assets internationally, now enhanced with physical cash access points.
Q5: How does this acquisition impact the cryptocurrency industry?
This represents continued consolidation and vertical integration within crypto infrastructure. It bridges physical and digital payment systems in ways that could accelerate mainstream cryptocurrency adoption, particularly for global remittances and payments.
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