Polygon integrates Coinme network: a step from scaling to real economy

The cryptocurrency industry is witnessing a significant transaction: Polygon is actively negotiating to acquire Coinme, one of the largest American operators of crypto ATMs. According to sources close to the negotiations, the deal value will range from $100 million to $125 million. This move signals a fundamental shift in the network’s strategy — from focusing on technical scaling to practical penetration into the physical payment infrastructure.

Why this transaction is strategically important

Polygon, which gained fame as an Ethereum Layer-2 solution, is beginning to rethink its role in the crypto ecosystem. Instead of solely focusing on faster and cheaper blockchain operations, the network aims to establish direct channels for consumers. Integrating Coinme will allow users to convert cash and fiat funds directly into network digital assets, including MATIC and other tokens.

Negotiations are being conducted through consulting firm Architect Partners. Both parties have declined to comment publicly, maintaining confidentiality of the negotiations. However, the logic of such a deal is clear: combining established fiat infrastructure with modern blockchain technology creates an opportunity for mass adoption.

History and position of Coinme in the market

Coinme started its operations on May 1, 2014, with the first licensed Bitcoin ATM. Over the years, the company has expanded to about 49 US states, forming one of the earliest regulated crypto kiosk networks in the country. Its machines allow consumers to buy and sell cryptocurrencies both for cash and via debit cards.

Coinme’s uniqueness lies in its comprehensive licensing base. The company has obtained money transfer licenses in nearly all US states, enabling it to operate in various jurisdictions with full regulatory approval. Over time, Coinme has expanded its offerings: beyond Bitcoin, kiosks now support several popular crypto tokens, targeting growing demand among retail consumers.

Changing development vectors of Polygon

The history of capital investments in Polygon tells of a slow reinterpretation of its mission. In 2023, the network raised $450 million in a funding round led by Sequoia Capital India. This capital significantly strengthened the company’s financial position and gave it flexibility for ambitious strategic expansion. The news of negotiations with Coinme coincides precisely with this wave of funding.

Polygon’s ecosystem is based on proof-of-stake and zero-knowledge technologies, such as zkEVM, which have served as the foundation for DeFi and Web3 applications. However, until recently, the network primarily focused on infrastructure for developers. Acquiring Coinme would represent a strategic pivot — from B2B solutions to B2C channels with direct consumer access.

Market complexity and implementation challenges

The crypto ATM market is far from an untapped niche. Bitcoin Depot and Coin Cloud already have extensive kiosk networks across the country. Additionally, traditional financial institutions are exploring the possibility of creating their own physical points of access to cryptocurrencies, further intensifying competition.

Technical integration also presents difficulties. The current Coinme network is primarily focused on Bitcoin operations. Expanding functionality to support assets based on Polygon will require both technical coordination and regulatory compliance. Observers will closely monitor how quickly Polygon can expand the range of assets in its kiosks.

However, Coinme’s existing licensing structure could become an asset in future expansion. It potentially supports the expansion of stablecoin payments and other crypto services for consumers. Such regulatory approval could serve as a foundation for Polygon’s broader payment ambitions in America.