Jan 13 (Reuters) – Blockchain company Polygon Labs said on Tuesday it would buy crypto payments company Coinme and crypto infrastructure provider Sequence for more than $250 million, as it seeks to “tap into growing demand for stablecoin-based transactions.”
Stablecoins, digital tokens pegged to stable assets such as the US dollar, are increasingly being explored as a tool for payments and settlements, especially after the passage of the Genius Act last year.
However, the infrastructure for such transactions remains fragmented and Polygon’s acquisitions aim to bring in key pieces internally while expanding its market reach.
“Our goal is to become a regulated payments player in the US. Payments are the decisive use case,” Polygon CEO Marc Boiron said in an interview with Reuters.
The initial push will focus on business-to-business payments, with a shift toward consumer services expected later, Boiron said.
Established players such as Visa and Mastercard are vying for dominance in stablecoin payments, but the saturated market can make it difficult for companies to differentiate themselves.
Boiron, however, said Polygon’s near-term strategy would be based on partnerships rather than head-to-head rivalries.
“In five or 10 years, we’ll find out if the cards will still be necessary. But for the moment, we can work together quite collaboratively and grow the pie,” he said.
Founded in 2014, Coinme allows users to convert cash into cryptocurrency. Its investors include crypto industry heavyweights such as Pantera, Digital Currency Group, and Circle.
Sequence offers technology to simplify cryptographic transfers between blockchains. It has been supported by Brevan ‌Howard Digital and Coinbase, among others.
(Reporting by Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)