In a major strategic move, the Ethereum scaling network Polygon is reportedly close to finalizing the acquisition of U.S.-based Bitcoin ATM operator Coinme. According to exclusive reports from CoinDesk, the deal is valued between $100 million and $125 million, with financial advisory firm Architect Partners involved in the process.
The acquisition represents a significant pivot for Polygon, a company primarily known for its layer-2 blockchain technology, as it seeks to bridge the gap between digital assets and physical financial infrastructure. Coinme, founded in 2014, operates one of the largest licensed Bitcoin ATM networks in the United States, with over 50,000 kiosk locations across 49 states. These machines allow users to buy and sell Bitcoin using cash or debit cards.
The strategic rationale behind the deal is multifaceted. For Polygon, it provides immediate access to a vast, non-custodial physical distribution network and a direct channel to onboard new users who may not use traditional crypto exchanges. Crucially, Coinme's status as a licensed money transmitter in nearly all U.S. states would grant Polygon a robust regulatory framework and compliance infrastructure. Industry experts, like Stanford fintech professor Dr. Anya Sharma, view this as part of a broader trend of "vertical integration" in crypto, where scaling platforms seek to control critical capital entry points.
However, the acquisition comes as Coinme faces significant regulatory headwinds. In December, the Washington State Department of Financial Institutions (DFI) ordered Coinme to halt all money transmission services. The regulator alleges the company illegally converted over $8 million in unredeemed customer voucher funds into corporate revenue. The DFI is seeking a $300,000 fine, a potential revocation of Coinme's license, and a possible 10-year industry ban for the company and its CEO, Neil Bergquist.
If completed, the integration could profoundly impact crypto accessibility. Analysts speculate that Polygon could expand the ATM network's capabilities beyond Bitcoin to support its native MATIC token and other assets within its ecosystem, dramatically simplifying the user experience for cash-based crypto transactions and potentially accelerating mainstream adoption.
