Representations of cryptocurrencies are seen in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration
Jan 13 (Reuters) - Blockchain firm Polygon Labs said on Tuesday it would buy crypto payments company Coinme and crypto infrastructure provider Sequence for more than $250 million, as it looks to tap the growing demand for stablecoin-based transactions.
Stablecoins, digital tokens pegged to stable assets such as the U.S. 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 key pieces in-house while expanding its reach in the market.
"Our goal is to become a regulated U.S. payments player. Payments is the killer use case," Polygon CEO Marc Boiron said in an interview with Reuters.
The initial push will target business-to-business payments, with a pivot to consumer services expected later, Boiron said.
Established players such as Visa and Mastercard are vying for dominance in stablecoin payments, but the crowded market may make it harder for companies to differentiate themselves.
Boiron, however, said Polygon's strategy in the near term would be built on partnerships instead of head-to-head rivalry.
"In five or 10 years, we will find out if cards are still going to be necessary. But for the time being, we can work together quite collaboratively and grow the pie," he said.
Coinme, founded in 2014, allows users to convert cash to crypto. Its investors include crypto industry heavyweights such as Pantera, Digital Currency Group and Circle.
Sequence offers technology to simplify crypto transfers across blockchains. It has been backed by Brevan Howard Digital and Coinbase, among others.
(Reporting by Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)
