Ethereum (ETH scaling network Polygon Labs signed definitive agreements Tuesday to acquire cryptocurrency exchange Coinme and wallet provider Sequence for more than $250 million as it pivots toward regulated stablecoin payments.
The acquisitions represent a strategic shift from token-focused blockchain infrastructure to revenue-generating payments business, with Polygon Labs targeting more than $100 million in annual revenue from transaction fees.
The deals will deliver core components of Polygon's Open Money Stack: regulated U.S. fiat on-ramps and off-ramps, enterprise wallet infrastructure, and cross-chain payment orchestration through a single API.
Licensed Infrastructure
Coinme, founded in 2014 as one of the first licensed digital currency exchanges in the United States, operates in 48 states under money transmitter licenses registered with FinCEN.
The Seattle-based company provides cryptocurrency access at more than 50,000 locations nationwide through partnerships with Coinstar kiosks, MoneyGram, ReadyCode ATMs, and retail checkout counters.
Coinme serves over one million retail users and provides white-label cryptocurrency-as-a-service platforms for fintech companies and enterprises.
New York-based Sequence contributes smart wallet technology and its Trails platform, which enables one-click cross-chain transactions without requiring users to manage bridges, swaps, or gas fees.
Sequence reports 2x transaction conversion rates compared to standard wallets and has processed more than 10 million transactions since Trails launched two months ago.
Revenue Strategy
"Our goal is to become a regulated U.S. payments player," Polygon Labs CEO Marc Boiron told Reuters.
The acquisitions mark a departure from Polygon's historical reliance on external partners to drive network activity, with revenue now generated through basis points on transactions rather than solely from POL token appreciation.
Combined, Polygon, Coinme and Sequence have processed more than $1 billion in off-chain sales and over $2 trillion in on-chain value transfers.
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Market Positioning
The strategy positions Polygon in direct competition with payments giant Stripe, which has acquired multiple stablecoin and blockchain infrastructure companies over the past year.
Polygon co-founder Sandeep Nailwal described the approach as a "reverse Stripe" where the company acquires infrastructure providers before building out blockchain capabilities.
The acquisitions come as stablecoins gain traction following passage of the U.S. GENIUS Act in 2025, which established federal frameworks for payment stablecoins.
The Sequence transaction is expected to close this month subject to regulatory approval, while Coinme will operate as a wholly owned subsidiary following closure anticipated in the second quarter of 2026.
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