Polygon Seeks $100 Million Investment for Stablecoin Payments Business

Polygon Labs is making a significant move into the payments industry by seeking up to $100 million in investment for its stablecoin payments business.

The new business, which will generate revenue from transaction fees while increasing transaction volume on the Polygon blockchain, puts it in competition with established players like Stripe, Coinbase, and Mastercard unit BVNK. To build this business, Polygon Labs acquired Coinme and Sequence together for $250 million in January.

Coinme provides conversion services between fiat currencies and cryptocurrencies, while Sequence offers crypto wallets. With these acquisitions, Polygon was able to provide payment processing services on its own without relying on outside firms.

The Information reported that as the crypto market downturn extends into a sixth month, more crypto companies are looking to shift toward payments and fintech. Established financial firms are also accelerating efforts to expand crypto payment services. Last month Mastercard announced it would acquire BVNK for up to $1.8 billion.