Polygon invests $250 million in dual acquisitions! Declares war on Stripe to secure the stablecoin market

Polygon Labs acquires Coinme and Sequence for $250 million, directly competing with Stripe. Coinme holds a US remittance license focused on cash-to-cryptocurrency exchanges, while Sequence builds blockchain infrastructure and crypto wallets. Founder Nailwal states that their strategy is opposite to Stripe’s: they first build blockchain networks and then introduce payment innovations.

Stripe Model’s Mirror Disruption Strategy

The strategic logic behind Polygon’s acquisition contrasts sharply with Stripe’s approach. Over the past year, Stripe has acquired stablecoin startup Bridge and a crypto wallet company, and invested in developing its own payment blockchain Stablecoin. Stripe’s acquisitions demonstrate its intent to control every layer of the stablecoin tech stack, from payment servers to user-held crypto accounts, forming a vertically integrated closed ecosystem.

“In a sense, Polygon’s stablecoin strategy is exactly the opposite of Stripe’s,” said Nailwal. Stripe first acquires multiple stablecoin startups, then builds its own blockchain. In contrast, Polygon already has a mature blockchain network and is bringing startups to develop on top of it. This “build infrastructure first, then introduce applications” approach has clear advantages: Polygon’s Ethereum-based blockchain network has been market-validated, with a large developer community and DeFi ecosystem, allowing acquired startups to immediately leverage existing resources.

Polygon Labs is best known for its outstanding performance during the NFT boom in 2021 and 2022. Over the past year, the company has made significant investments in the payments space, even poaching Stripe’s crypto head John Egan. This acquisition marks a key step in Polygon’s transition from a “Layer-2 scaling solution” to a “full-stack fintech platform.” “Polygon Labs is evolving into a mature fintech company,” emphasized Nailwal.

Strategic Complementarity of the Dual Acquisitions

The acquisition prices for Coinme and Sequence have attracted market attention. According to CoinDesk, Coinme’s purchase price is estimated between $100 million and $125 million, implying Sequence’s valuation could be between $125 million and $150 million. However, Polygon Labs CEO Boiron disputed this report, stating “Almost all of the content in the CoinDesk article is wrong,” but did not disclose actual figures.

Based in Seattle, Coinme focuses on cash-to-cryptocurrency exchanges and is known for its work in the crypto ATM space, holding a series of remittance licenses across the US. These licenses are core assets for Coinme, enabling it to legally provide fiat-to-crypto and crypto-to-fiat exchanges across US states. Coinme has deployed thousands of crypto ATMs nationwide, in convenience stores, gas stations, and supermarkets, providing physical touchpoints for users without bank accounts or familiarity with online transactions.

Three Strategic Values of the Dual Polygon Acquisitions

Regulatory License Assets: Coinme’s US remittance licenses provide legal channels for Polygon to enter regulated markets, bypassing lengthy application processes.

Physical Payment Network: Thousands of crypto ATMs across the US extend Polygon’s ecosystem from online to offline, reaching groups underserved by traditional financial services.

Technical Infrastructure: Sequence’s blockchain wallets and developer tools can be integrated into the Polygon ecosystem, lowering entry barriers for developers and users.

Sequence, based in New York, focuses on building blockchain infrastructure, including crypto wallets and developer tools. Its wallet solutions support multi-chain deployment and offer simplified user interfaces, reducing barriers for non-technical users to use cryptocurrencies. The combined offerings of both companies provide Polygon with a complete payment stack from infrastructure to user interface.

Explosive Stablecoin Market and Regulatory Opportunities

As Polygon Labs enters the payments space, the stablecoin boom is sweeping globally. Stablecoins are cryptocurrencies pegged to real-world assets like the US dollar. After President Trump signed new regulations on stablecoins in July, fintech firms, tech companies, and even banks announced plans to launch their own stablecoins. Supporters claim stablecoins are an upgrade to decades-old traditional financial infrastructure, enabling real-time settlement, reducing cross-border payment costs, and providing 24/7 availability.

Polygon’s blockchain network is based on Ethereum, and the company is trying to ride this wave. The regulatory clarity from the Trump administration has injected huge confidence into the stablecoin market, prompting many previously cautious institutional investors and corporations to seriously consider stablecoins as a payment tool. Polygon’s timing for the acquisition is precise, leveraging regulatory tailwinds and establishing a first-mover advantage before the market explodes.

Legal Risks and Responses

Legal disputes involving Coinme are an important risk factor in this acquisition. In 2025, regulators in California and Washington launched investigations into the company, accusing it of violations, including failing to prevent customers from withdrawing over $1,000 per day from its crypto ATMs. This breaches AML (Anti-Money Laundering) regulations concerning large cash transactions. A month after regulators took action, Washington’s authorities agreed to temporarily suspend enforcement orders against Coinme.

Boiron commented on Coinme’s compliance mechanisms: “I think they are doing far more than required. Behind the scenes, their way of limiting user risk is, in my opinion, the most advanced.” He emphasized that Coinme has strengthened its KYC (Know Your Customer) and AML processes and maintains close communication with regulators. Polygon evidently evaluated these legal risks and believes the issues are under control. After the acquisition, Polygon may further invest in compliance infrastructure to ensure smooth operation under strict regulatory environments.

This acquisition marks Polygon’s strategic shift from a blockchain infrastructure provider to a comprehensive fintech platform, reflecting the industry’s move from speculation-driven to utility-driven value creation.