Polygon has embarked on building a $250 million payment ecosystem

Polygon Labs has recently revealed the most notable strategic shift in the cryptocurrency industry. They decided to acquire two startups, Coinme and Sequence, for $250 million, with the goal of completing a stablecoin payment network. This move goes beyond simple technology acquisition, demonstrating a larger ambition to build a complete on-chain payment stack.

Strengthening the Payment Network, Polygon’s Chosen Strategy

The reason Polygon Labs chose these two companies is clear. Coinme holds remittance licenses in several states across the United States and has secured offline access through the development of cryptocurrency ATM infrastructure. Sequence handles wallet and on-chain infrastructure services, providing online-based payment functionalities. Combining the strengths of both companies allows Polygon to create a payment platform that complies with regulations and offers user accessibility.

Securing On-Chain Infrastructure, Completing the Payment Stack

The core of this acquisition strategy is to build a ‘complete on-chain payment stack.’ Unlike traditional centralized payment methods, Polygon aims to create an ecosystem that encompasses regulatory compliance(Coinme’s licenses), technology-based(Sequence’s wallets), and user accessibility(cryptocurrency ATMs). This is not just about gathering technology but about establishing a comprehensive system that enables blockchain-based payments to operate in real life.

Different Path from Stripe, Polygon’s Differentiation

An interesting point is that Polygon’s strategy is completely opposite to Stripe(’s approach to stablecoins. Polygon describes this as “reverse alignment.” Instead of traditional centralized payment companies adopting stablecoins, they first build an on-chain blockchain-based system and then expand into real-world payments. This reflects Polygon’s long-term vision and clearly illustrates how they see the future of cryptocurrency payments.