Polygon Labs is set to acquire crypto payments platform Coinme and crypto infrastructure company Sequence for a combined value of over $250 million at a time when the company is planning to focus on a profitable stablecoin payments business globally.
These acquisitions come at a time during a favourable regulatory environment for the sector in the United States (US), with further plans to scale up in markets where regulations will be favourable.
The company further plans to tap into the Middle East, Latin America and Europe, Sandeep Nailwal, founder, Polygon Foundation, told Business Standard.
“Polygon Labs will become more and more payment oriented and run an actual profitable business on the payment side while enabling transactions on Polygon. That creates the stronger network effects and modes for Polygon,” he said.
He added that existing investors in the acquired firms would continue with the company following the acquisition.
“These acquisitions are being done by Polygon Labs, which builds middleware on top of the blockchain. All these capabilities (from the acquisitions) add to a lot of value of Polygon Labs where it can build services on top of the chain,” Nailwal explained.
The company said Coinme enables money-transmitter licences and allows for compliance infrastructure in 48 US states. It is a physical fiat-to-crypto network across over 50,000 retail locations and a licensed wallet infrastructure.
Sequence enables smart wallets and cross-chain orchestration that simplifies crypto payments flows.
“Polygon has never been a winner in meme coins and speculative markets. But, it has always been a winner in trying to get adoption where there are some real-world use cases being done. Whether it’s the tokenisation or the stablecoin related payments, Polygon generally scores top on the scale,” Nailwal added.
Stablecoins and India
Nailwal noted that India’s domestic payments market was ubiquitous with the country’s real-time payments system Unified Payments Interface (UPI) and stablecoin adoption may still be far away domestically.
However, they would have an edge over UPI when it comes to cross-border payments flows.
Polygon Labs is set to acquire crypto payments platform Coinme and crypto infrastructure company Sequence for a combined value of over $250 million at a time when the company is planning to focus on a profitable stablecoin payments business globally.
These acquisitions come at a time during a favourable regulatory environment for the sector in the United States (US), with further plans to scale up in markets where regulations will be favourable.
The company further plans to tap into the Middle East, Latin America and Europe, Sandeep Nailwal, founder, Polygon Foundation, told Business Standard.
“Polygon Labs will become more and more payment oriented and run an actual profitable business on the payment side while enabling transactions on Polygon. That creates the stronger network effects and modes for Polygon,” he said.
He added that existing investors in the acquired firms would continue with the company following the acquisition.
“These acquisitions are being done by Polygon Labs, which builds middleware on top of the blockchain. All these capabilities (from the acquisitions) add to a lot of value of Polygon Labs where it can build services on top of the chain,” Nailwal explained.
The company said Coinme enables money-transmitter licences and allows for compliance infrastructure in 48 US states. It is a physical fiat-to-crypto network across over 50,000 retail locations and a licensed wallet infrastructure.
Sequence enables smart wallets and cross-chain orchestration that simplifies crypto payments flows.
“Polygon has never been a winner in meme coins and speculative markets. But, it has always been a winner in trying to get adoption where there are some real-world use cases being done. Whether it’s the tokenisation or the stablecoin related payments, Polygon generally scores top on the scale,” Nailwal added.
Stablecoins and India
Nailwal noted that India’s domestic payments market was ubiquitous with the country’s real-time payments system Unified Payments Interface (UPI) and stablecoin adoption may still be far away domestically.
However, they would have an edge over UPI when it comes to cross-border payments flows.
“If there was an India stablecoin, one could directly receive (in) India stablecoin, whether it’s Central Bank Digital Currency (CBDC)-backed or direct or whatever, that can accelerate this thing (adoption). I still don’t see stable coins acting in a very large way in the domestic markets in India because Indian financial infrastructure is state of the art,” he explained.
Building a consumer app is a completely different ballgame. We would love to partner with somebody who’s available and most likely that’s how we will do it,” he added.
Stablecoins are not recognised as a legal tender in India. However, the Reserve Bank of India’s (RBI) is pushing for the adoption of its own CBDC.
He added that the company was partnering with local partners in India to enable cross-border stablecoin flows.
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