Cryptocurrency has evolved from its wild west origins into a structured ecosystem where infrastructure—the often-invisible technology making digital assets accessible through familiar channels—plays a crucial role.
Seattle-based Coinme, founded in 2014, has built this infrastructure layer through its Crypto-as-a-Service (CaaS) platform, enabling businesses to integrate cryptocurrency capabilities without starting from scratch.
Core Components
Coinme’s enterprise platform consists of three fundamental services that partners can implement separately or as a complete package:
Payment Processing: This API allows partners to accept cash, debit cards, and bank transfers for cryptocurrency purchases, bridging traditional payment systems with blockchain networks.
Redemption Services: This component enables converting cryptocurrency back to cash or other currencies, providing complete transaction cycles for business partners.
Custody Solutions: “Coinme provides the backend technology to custody that digital asset in a secure manner so people can hold it,” explains CEO Neil Bergquist. This infrastructure allows businesses to offer cryptocurrency wallets without specialized security expertise.
“Because Coinme has these baskets of infrastructure, we’re able to allow the partner or the token project to really pick and choose the user experience that they want to provide,” says Bergquist.
Technical Architecture
While specific details remain private, key elements of Coinme’s infrastructure are evident. The platform processes significant volume—over $1 billion in cryptocurrency transactions through its retail network.
A notable technical advantage is transaction batching: “We batch Bitcoin transactions… we can take hundreds of Bitcoin transactions and broadcast them to the network as a single transaction, which then takes that 5 to $10 Bitcoin blockchain fee and divides it among a hundred,” Bergquist explains.
The architecture includes robust security systems protecting private keys, while maintaining transaction accessibility, along with extensive compliance features reflecting Coinme’s regulatory status in the US.
Integration Methods
Partners can connect through:
- Direct API integration for maximum control
- SDK solutions with pre-built components
- White-labeled applications requiring minimal development
MoneyGram exemplifies the white-label approach: “MoneyGram selects Coinme to power its mobile-based crypto offering,” demonstrating how Coinme’s infrastructure powers cryptocurrency features within established financial applications.
Expanding Capabilities
Initially Bitcoin-only, Coinme now supports “Ethereum, Chainlink, Dogecoin, Litecoin, Stellar (XLM), and Polygon (MATIC).” A 2022 partnership with Circle and the Stellar Development Foundation added support for sending the USD Coin (USDC) over the Stellar blockchain.
Recent innovations focus on user experience, including “automatic and near-instant fulfillment of crypto in the Coinme wallet” at Coinstar kiosks.
Real-World Applications
Developers have implemented various scenarios beyond basic trading:
Cross-Border Remittances: “There’s $50 billion a year of cash that’s sent from the United States to Latin America… now you can put that cash into a Coinme location, get crypto and send that anywhere faster and cheaper than a lot of existing solutions.”
Merchant Payment Systems: Developers have integrated Coinme’s APIs to enable cryptocurrency payments while eliminating chargeback risks.
Technical Challenges
Despite progress, Coinme continues addressing several challenges. Network congestion can slow transactions, though batching helps mitigate this. Connecting multiple blockchains while maintaining uniform security standards requires continuous development.
User experience remains another focus: “For anyone who has ever sent Bitcoin or digital currency on chain, I think you can agree that it’s scary,” acknowledges Bergquist, noting that sending to incorrect addresses results in permanent loss. Coinme’s infrastructure shields users from these complexities through simplified interfaces.
Through its CaaS platform, Coinme has created infrastructure enabling businesses to integrate cryptocurrency capabilities without specialized blockchain expertise—potentially accelerating mainstream adoption by embedding digital asset functionality within familiar applications.
