Polygon Labs has acquired Sequence to strengthen enterprise wallet infrastructure and accelerate the adoption of stablecoin payments.
The deal combines non-custodial smart wallet technology with high-efficiency blockchain rails.
Both companies aim to remove authentication, recovery, permissions, and compliance barriers that have delayed production-ready deployments.
The acquisition introduces a robust enterprise-grade wallet offering alongside widely adopted, efficient blockchain infrastructure.
Wallet fragmentation and compliance barriers slow stablecoin payments on Polygon
Polygon Labs identified account fragmentation as a persistent obstacle for blockchain payments teams.
Users often generate multiple wallet addresses across different apps. This structure leaves stranded balances and inconsistent account states. Operations teams struggle to manage that complexity at scale.
Traditional wallets were built for asset custody, not operational money movement.
A single private key controls all permissions under this model. That creates an all-or-nothing authority structure.
Delegating access or automating transactions increases risk without defined limits. Compliance teams cannot complete proper security reviews under unclear authority models.
Recovery mechanisms create further complications. Simple recovery flows expose accounts to silent takeovers. Stronger recovery systems add friction and increase failed-transaction rates.
Support costs increase when users cannot recover funds efficiently. Polygon said institutions require stronger yet practical recovery standards for real-world payment systems.
Operations teams also face difficulty defining fund controls. Without a clear model of who can move funds and under what conditions, incident response becomes slow.
Compliance reviews stall when permissions lack defined boundaries. Polygon said the Sequence acquisition addresses these structural weaknesses.
Sequence introduces smart sessions and sandboxed permissions
Sequence brings smart wallet infrastructure designed for payment-grade environments. Its Smart Sessions feature allows apps to operate within sandboxed, clearly defined permissions.
Users set session limits upfront, which reduces signature prompts without sacrificing control. This structure replaces broad approvals with controlled access boundaries.
Timed recovery keys add a time-based security layer. These keys prevent silent account takeovers while maintaining usability.
Sequence also integrates hardware-isolated signing and verifiable attestations. Polygon said these features meet enterprise security requirements.
For developers, Sequence provides SDKs across Web, Mobile, Unity, and Unreal. The tools include authentication flows, session management, and transaction handling.
Ecosystems can launch branded wallets on their own domains with admin controls for chains, branding, and session policies.
Polygon contributes fast finality and predictable transaction costs. The company said this reliability enables Smart Sessions and cross-chain functionality at scale.
Together, Polygon and Sequence aim to transform wallet infrastructure into a production-ready foundation for stablecoin payments.