Polygon Labs acquires Coinme and Sequence for $250 million to build a stablecoin payment network

1. Milestones in Cryptocurrency Payment Infrastructure

On January 13, 2026, the blockchain industry experienced a globally impactful merger and acquisition—Polygon Labs announced the acquisition of two crypto startups, Coinme and Sequence, for a total valuation exceeding $250 million. This not only represents a significant capital operation but also marks a critical turning point as blockchain payment infrastructure transitions from proof of concept to large-scale commercial application.

As a pioneer in the blockchain payment space, Polygon Labs’ strategic intent is clear: to build a comprehensive stablecoin payment stack that combines compliance, scalability, and ease of use. Sandeep Nailwal, founder of the Polygon Foundation, candidly stated that this acquisition positions Polygon Labs to directly compete with Stripe, signaling that blockchain-native companies are beginning to systematically challenge traditional fintech giants’ dominance in payments.

Amidst the ongoing bullish trend in the crypto market, this acquisition comes at an opportune time. According to the latest data from Gate, as of January 14, Bitcoin’s price briefly surged past $96,000, then slightly retreated, currently trading at $94,339.80, with a 24-hour increase of 4.6%. Ethereum’s price also rose to $3,325.90, up 7.7%, and Polygon’s native token POL performed strongly as well. This market environment provides fertile ground for the large-scale adoption of crypto payment infrastructure and signals an imminent shift toward stablecoins as everyday payment tools.

2. Core Transaction Information and Strategic Intent

2.1 Deal Size and Details

Polygon Labs’ combined acquisition of Coinme and Sequence exceeds $250 million, making it one of the largest crypto mergers since the start of 2026. Although Polygon Labs has not disclosed specific transaction amounts or payment methods (cash, equity, or hybrid), industry analysts generally believe that the valuation reflects the strategic value and market position of the acquired companies.

The transaction is expected to be completed in phases: the Sequence deal is anticipated to close within January 2026, while the Coinme acquisition awaits regulatory approval, with an expected completion in Q2 2026. This phased approach considers regulatory complexities of different targets and provides Polygon ample time to integrate resources and optimize operations.

2.2 Strategic Positioning: Building an “Open Money Stack”

Polygon Labs CEO Marc Boiron explicitly stated that this acquisition is a key component of the company’s stablecoin and payment strategy, aiming to “make Polygon the world’s largest stablecoin liquidity channel.” The core vision is to develop the so-called Open Money Stack—an open, integrated service and technology stack designed to enable instant, reliable fund flows and facilitate global operations.

Nailwal further elaborated on the company’s “reverse Stripe” approach: “Stripe expanded from payment processing into blockchain, while Polygon is building the payment and compliance layer from blockchain upwards.” This divergence in paths reflects the fundamentally different development logic of blockchain-native firms versus traditional fintech companies and hints at two potential paradigms of future competition in the payments industry.

It’s noteworthy that the Polygon ecosystem already has a substantial foundation. According to official Polygon data, by the end of 2025, the stablecoin supply on Polygon’s chain reached approximately $3.3 billion, a three-year high. Additionally, Polygon has processed over $2.2 trillion in on-chain value transfers, serving millions of users and thousands of applications with production-grade services.

3. In-Depth Analysis of Acquisition Targets

3.1 Coinme: A Compliant Fiat Currency Gateway

Founded in 2014, Coinme is one of the earliest licensed digital currency exchanges in the US and a key contributor to this acquisition’s compliance value. Headquartered in Seattle, it focuses on cash and crypto asset exchanges and operates an extensive network of crypto ATMs across the US.

Coinme’s core strength lies in its comprehensive regulatory compliance:

• Holds money transfer licenses in 48 US states
• Operates over 50,000 retail points in a physical fiat-crypto network
• Provides a compliant white-label crypto-as-a-service (CaaS) platform
• Has over 1 million consumer payment app users

Furthermore, Coinme is backed by top-tier investors including Pantera, Digital Currency Group ((DCG)), Coinstar, Circle Ventures, and MoneyGram. It serves well-known clients such as Exodus, Coinstar, and Baanx. These resources and client relationships offer Polygon valuable entry points and bridges into traditional finance.

Coinme CEO Neil Bergquist clearly articulated the strategic significance of this acquisition: “Federal stablecoin regulation has created a clear development path for the market, but to achieve scale, compliant fiat infrastructure must be integrated with institutional-grade settlement rails.” This is the core logic behind Polygon’s acquisition of Coinme—seamlessly connecting traditional financial systems with blockchain settlement layers through compliant channels.

3.2 Sequence: Seamless Cross-Chain Payment Experience

Contrasting Coinme’s compliance focus, Sequence provides core infrastructure capabilities. Based in New York, the company specializes in blockchain infrastructure services, particularly smart wallets and cross-chain coordination engines.

Sequence’s flagship product is Trails—a one-click cross-chain routing and intent engine designed to simplify crypto payments across networks without requiring users to manage cross-chain bridges, swaps, or gas fees. This abstraction is crucial for mainstream adoption, as it hides blockchain complexity and offers a smooth experience similar to traditional payments.

Market validation of Sequence’s technical strength includes:

• Applications using Sequence’s embedded wallet have twice the transaction conversion rate compared to non-Sequence wallets
• Trails engine, launched less than two months ago, has processed over 10 million transactions
• Supports major blockchain ecosystems including Polygon, Immutable, Monad, Magic Eden, and Arbitrum

Sequence’s investors include Brevan Howard Digital, Initialized Capital, Coinbase, Polychain, Consensys, as well as gaming giants Take-Two Interactive and Ubisoft. These strategic investors not only provide funding but also bring cross-industry application scenarios and partner networks.

Sequence co-founder and CEO Peter Kieltyka highlighted a key industry pain point: “Blockchain fragmentation has been one of the biggest barriers to mainstream adoption. By simplifying onboarding and cross-chain payments, Polygon is creating an environment where global payments feel familiar and reliable.” This underscores the critical value Sequence’s technology offers to Polygon’s open money stack.

4. Market Impact and Industry Reshaping

4.1 Intensified Competition in Stablecoin Payment Infrastructure

Polygon Labs’ acquisition directly targets the trillion-dollar stablecoin payment market. As more financial institutions and enterprises explore stablecoins for cross-border payments, trade settlement, and daily transactions, the integrity and compliance of payment infrastructure become key competitive factors.

It’s important to note that Polygon is not the only player recognizing this opportunity. Traditional fintech giant Stripe has been active over the past year, acquiring stablecoin startups, crypto wallet companies, and launching its own blockchain tailored for payments, aiming to control the entire stablecoin tech stack from processing to user asset custody. This “top-down” versus “bottom-up” approach indicates a fierce future rivalry in the stablecoin payments domain.

Meanwhile, traditional financial institutions are accelerating their deployment. Franklin D. D. recently upgraded two money market funds for tokenized finance and regulated stablecoins. Major banks like JPMorgan have launched tokenized money market products on Ethereum. These developments show that stablecoin payments are penetrating from crypto-native sectors into traditional finance, with infrastructure providers playing a pivotal role.

4.2 Regulatory Environment and Market Opportunities

This acquisition occurs during a critical period of clarifying US crypto regulation. The Senate Banking Committee is reviewing the Crypto Market Structure Act, which seeks to delineate regulatory authority between the SEC and CFTC and clarify whether digital assets are securities or commodities. While the draft bill includes restrictions on stablecoin yields, it also provides legal certainty for compliant stablecoin payment services.

Coinme’s licensing is especially valuable at this regulatory turning point. By acquiring Coinme, Polygon gains legal operation rights for money transfers in 48 US states, creating a regulatory moat for its stablecoin payment services. In contrast, many crypto payment startups remain in regulatory gray areas, facing policy uncertainties.

Market data indicates enormous growth potential for stablecoin payments. According to Polygon’s official figures, the combined transaction volume of Coinme, Sequence, and Polygon has exceeded $1 billion in off-chain sales and over $2 trillion in on-chain value transfers. As stablecoins expand into cross-border remittances, enterprise payments, and consumer scenarios, these numbers are expected to grow exponentially.

5. Industry Trends and Investment Insights

5.1 Accelerating Crypto M&A Activity

Polygon Labs’ acquisition of over $250 million exemplifies the ongoing wave of crypto mergers and acquisitions in 2026. Industry data shows that in 2025, disclosed M&A deals in crypto totaled approximately $8.6 billion across 133 transactions—setting a record. This trend continues into early 2026, reflecting the industry’s shift from early startup phases to mature consolidation.

Meanwhile, crypto data platform CoinGecko is considering a sale valued at around $500 million, having engaged investment bank Moelis for the process. This indicates a broader revaluation of crypto infrastructure projects, with high-quality assets attracting significant traditional capital.

For investors, this signals that projects with core technology, compliance advantages, or unique market positioning are likely to become hot acquisition targets, potentially delivering substantial returns for early investors.

5.2 Investment Opportunities on the Gate Platform

Investors interested in blockchain payments should closely monitor the Polygon ecosystem and related assets. On the Gate platform, potential asset allocations include:

• Core assets of the Polygon ecosystem: As the lead acquirer, Polygon’s value capture ability is expected to strengthen with payment expansion. Investors can easily trade MATIC and Polygon-related assets to capitalize on ecosystem growth.
• Stablecoin payment sector: As Polygon advances its open money stack, stablecoins’ application in payments is likely to accelerate. Focus on trading pairs of mainstream stablecoins and blockchain projects benefiting from improved payment infrastructure.
• Compliance and licensing value: Coinme’s case highlights the strategic importance of licenses in crypto payments. Keep an eye on other platforms with similar compliance advantages, which could become targets in the next wave of M&A.
• Cross-chain interoperability tech: Sequence’s technology demonstrates the importance of cross-chain interoperability in payments. Watch for projects dedicated to simplifying cross-chain transactions, especially those already recognized by mainstream institutions.

Note that the crypto market is highly volatile; investors should make decisions cautiously based on their risk tolerance. The Gate platform offers a wide range of trading pairs and deep liquidity, facilitating diversified strategies, but all investments should be based on thorough fundamental and market analysis.

Outlook: A New Chapter in Crypto Payments

Polygon Labs’ acquisition of Coinme and Sequence for over $250 million marks a new phase in the development of crypto payment infrastructure—shifting from isolated technological innovation to building a complete commercial ecosystem. By integrating compliant fiat channels, user-friendly wallets, and efficient cross-chain settlement, Polygon aims to create an open money stack capable of competing with traditional giants like Stripe.

The core of this strategy is to lower the barriers to crypto payments, enabling stablecoins not only as stores of value but also as efficient mediums for daily transactions. As Sandeep Nailwal, founder of the Polygon Foundation, envisions: “Our mission is to bring all funds on-chain, rebuild the way money works, making it instant, reliable, programmable, and open.”

For the entire crypto industry, this acquisition sends a clear signal: infrastructure maturity is becoming a key factor in next-stage competition. As more traditional financial institutions and enterprises explore stablecoin payments, blockchain networks with complete, compliant, and user-friendly payment solutions will gain a significant first-mover advantage.

On platforms like Gate, investors can closely follow these market shifts and opportunities. Whether directly engaging with Polygon’s ecosystem or exploring other promising projects in the stablecoin payment sector, understanding the underlying logic and business value of infrastructure development will be crucial for making informed investment decisions. The future of crypto payments has arrived, and those building this future’s infrastructure are at the forefront of value creation.