Polygon Labs Seeks $100M for Stablecoin Payments Venture

Polygon Labs, the developer behind one of Ethereum's leading scaling networks, is in early discussions with investors to raise up to $100 million for a new stablecoin payments business, according to sources familiar with the matter. The funding would support the company's strategic shift toward regulated financial services amid a slowdown in broader cryptocurrency trading activity.

The proposed raise aims to fuel expansion into stablecoin-based payments, which Polygon Labs views as a key growth area for blockchain technology. Stablecoins, digital tokens pegged to fiat currencies like the U.S. dollar, are increasingly used for cross-border settlements and remittances due to their speed and low costs. The company plans to sell between $50 million and $100 million in equity for the venture, with CEO Marc Boiron set to lead the unit. "Our ambition is to establish ourselves as a regulated payments entity in the U.S. Payments represent the most compelling use case," Boiron told Reuters in January.

This move builds on recent acquisitions totaling $250 million for U.S.-based crypto payments firm Coinme and wallet infrastructure provider Sequence. The deals integrate fiat on-ramps, card...