Polygon acquires Bitcoin ATM provider Coinme – Expansion into Fiat Ramp Solutions

Polygon, the Ethereum Layer-2 network enabling faster transactions and lower fees, is expanding its reach. According to industry sources, Polygon is close to acquiring Coinme, a pioneer in Bitcoin ATMs in the USA.

The Path from Coinme to Market Leadership

Coinme is considered one of the pioneers in the Bitcoin ATM industry. The company activated its first licensed Bitcoin ATM on May 1, 2014, and has built a dense network over the years. Today, Coinme operates ATMs in 49 US states and has continuously expanded its offerings. In addition to Bitcoin, popular crypto tokens such as Dogecoin, Ethereum, and MATIC are now available at kiosks in various grocery stores. This infrastructure provides retail customers with direct access to the crypto market.

Details of the Planned Transaction

Polygon plans to acquire Coinme for a purchase price between $100 million and $125 million, according to people familiar with the matter. The transaction is being advised by Architect Partners, an established Mergers & Acquisitions consulting firm. At the time of publication, both companies declined to comment on the report. A spokesperson declined to comment, while Coinme has not issued any statement so far.

Polygon’s Strategic Expansion into Fiat Ramp Infrastructure

This acquisition marks a significant step for Polygon. The Layer-2 network gains direct access to retail customers and fiat entry points through Coinme’s established network. At a time when the crypto industry is increasingly aiming for mass adoption, this acquisition enables Polygon to integrate its blockchain solutions into existing, regulated fiat ramp infrastructure.

Financial Strength and Past Development

Polygon’s recent development underscores the project’s ambitions. In 2023, Polygon raised $450 million in a funding round led by Sequoia Capital India. This significant investment supports Polygon’s goal of playing a leading role in the Web-3 ecosystem. The planned Coinme acquisition now shows that the company is investing these funds into strategic growth initiatives and market expansion.

Impact on the Crypto Industry

The acquisition could have far-reaching consequences for the regulation and adoption of cryptocurrencies in retail. By combining Polygon’s technological innovations with Coinme’s extensive presence in physical retail locations, a unique platform is created. This could encourage other blockchain projects to pursue similar strategies and leverage existing fiat ramp infrastructure to spread their technologies.