Open Money Stack: How Polygon Is Bringing Cross-Border Payments Fully Onchain

Polygon Labs revealed a new initiative called the Open Money Stack, designed to support stablecoin payments across borders without the usual delays or high costs associated with traditional systems. 

The company, known for its blockchain infrastructure that has handled over $2 trillion in onchain value transfers, positions this stack as a way to bring all money onchain, allowing seamless movement for consumers, businesses, and even AI agents. This development comes as global money transfers reach about $2 quadrillion annually, highlighting a market where efficiency could transform daily operations. 

The announcement builds on Polygon's six years of experience in scaling blockchain technology, starting with the Polygon Chain, which has served millions of users and thousands of applications. By integrating services such as blockchain rails, wallets, and on-ramps, the stack seeks to make money movement programmatic and boundless, much like how the internet liberated information flow.

What is the Open Money Stack?

At its core, the Open Money Stack is an integrated set of tools and services that enable instant, reliable transfers of money anywhere in the world. It includes components like onchain orchestration for coordinating transactions, wallet infrastructure for secure holding, and compliance features to meet regulatory needs. 

For instance, a business in São Paulo could send Brazilian real to a designer in Lagos, who receives it in their preferred currency within seconds, without intermediaries or unpredictable costs. This eliminates the days-long waits common in legacy banking, where funds often linger in transit.

The stack also ensures that money remains onchain indefinitely, earning yield even when idle. Users gain access to global earning opportunities across various assets and risk levels, potentially matching or exceeding offchain returns. 

Identity verification onchain further unlocks these options, while interoperability protocols like Polygon's AggLayer connect different chains seamlessly. As a result, senders and recipients do not need to worry about matching asset types; the system handles conversions automatically, supporting tokenized deposits and stablecoins alike.

Polygon highlights that the stack makes chains invisible to users, abstracting complexities such as fees or wallet setup. Recovery options for lost access add practicality, and the overall design caters to diverse needs, from one-tap payments to custodial choices.

What are the Key Features and Benefits?

The modular nature of the stack allows businesses to pick specific elements, such as dedicated blockspace for compute or fiat-to-stablecoin conversions. This flexibility reduces reliance on multiple providers, streamlining operations for fintech firms and institutions. Liquidity management ensures funds are always available, while regulatory controls help navigate compliance in different jurisdictions.

In practical terms, the stack could reshape cross-border payments by closing the gap between fiat and onchain settlements. Traditional systems often involve multiple banks and cutoff times, leading to inefficiencies. 

Here, money moves without such barriers, and once onchain, it stays versatile for payments, investments, or integrations into apps. Polygon notes that upcoming upgrades to the Polygon Chain will enhance privacy, priority processing, and scalability, preparing for exponential growth in activity.

Recent collaborations, including one with Mastercard for verified usernames in self-custody wallets, demonstrate Polygon's push toward user-friendly, secure ecosystems. Additionally, reports suggest Polygon is nearing a $100 million to $125 million acquisition of Coinme, a bitcoin kiosk provider, which could extend its reach into physical access points for crypto.

Progress and Execution Plans

Polygon has already developed many stack components through internal efforts and partnerships, with others set for release soon. The company plans to roll out the stack in phases, starting with a select group of design partners. Interested parties can apply via Polygon's website to collaborate on building with the system.

“Our mission is simple. Move all money onchain and make it seamless, open, and interoperable for everyone,” said Sandeep Nailwal, founder of Polygon and CEO of the Polygon Foundation, and Marc Boiron, CEO of Polygon Labs.

In the coming weeks, Polygon intends to announce initiatives expanding capabilities in payments, orchestration, and onchain primitives. These steps aim to transition from vision to widespread use, defining standards for money movement over the next three decades.

Sources:

• _{Polygon on X: Open Money Stack announcement by Marc Boiron.}
• _{Polygon Website: Mastercard collaboration for verified usernames in self-custody wallets.}
• _{CoinDesk: Polygon nearing acquisition of Coinme bitcoin kiosk provider.}