Cash-to-crypto exchange Coinme has marked significant milestones in the first half of 2024. The company, which launched the first licensed bitcoin ATM in the U.S. a decade ago, recently announced surpassing $1 billion in retail sales and the appointment of a new chief legal and compliance officer, signaling a new phase of growth and maturity for the Seattle-based firm.
Founded in 2014 by Neil Bergquist and Michael Smyers, Coinme has weathered the volatile crypto market to emerge as a leader in providing accessible cryptocurrency services to mainstream consumers, primarily through bitcoin ATMs at convenient retail locations.
The company’s journey from operating a handful of bitcoin ATMs to becoming the largest cash-to-crypto network in the U.S. illustrates both the rapid adoption of digital currencies and the increasing demand for user-friendly on-ramps to the crypto economy.
Retail Sales Milestone
On May 1, 2024, Coinme announced it had surpassed $1 billion in retail sales, coinciding with its 10th anniversary. This achievement is particularly notable given the company’s focus on physical locations and cash transactions, a strategy that sets it apart from purely digital exchanges.
“We founded Coinme in 2014 because we believed in the power of crypto to help people improve their everyday financial lives,” said Neil Bergquist, CEO and co-founder. “New technologies and asset classes are usually only available to a select few. True to the servant ethos of bitcoin, we’re pleased to have made bitcoin accessible for all.”
The company’s growth trajectory has been impressive, with an average yearly revenue growth rate of 164% since inception, demonstrating persistent demand for easy-to-use crypto services.
Coinme’s approach to expansion has relied heavily on strategic partnerships with established financial services companies. Its collaboration with Coinstar, announced in early 2019, was a game changer, allowing Coinme to leverage Coinstar’s extensive network of kiosks. This move expanded Coinme’s presence from 70 to over 2,100 locations across the U.S.
Kevin McColly, CEO at Coinstar, commented on the partnership: “Coinstar is committed to continuing to offer consumers a bridge to the digital economy, including digital currencies. The Coinme and Coinstar collaboration has provided value to both our customers and retailers.”
Another significant partnership came in 2021 with MoneyGram, further expanding Coinme’s reach. These collaborations have resulted in Coinme having a location within roughly 5 miles of over 90% of the American population, making it the largest cash-to-crypto physical ecosystem in the U.S.
Appointment of Chief Legal Officer
Coinme followed up its sales milestone with a June announcement of the appointment of Robert Villaseñor as chief legal and compliance officer. This strategic hire comes at a crucial time for the company as it navigates the increasingly complex regulatory landscape of the cryptocurrency industry, which is increasingly progressing into the mainstream financial world.
Villaseñor brings over 25 years of legal experience to the role, including significant expertise in the finance and money transmission sectors. His most recent position was as general counsel and corporate secretary for MoneyGram International Inc., where he led global legal, compliance, human resources, government relations, sourcing, and corporate affairs functions.
“As Coinme continues to innovate and expand in the rapidly evolving cryptocurrency industry, I’m excited to join the team and help it navigate the complex legal and regulatory landscape,” said Villaseñor. “Ensuring compliance and minimizing risk while supporting strategic growth will be my top priority, and I look forward to contributing to the company’s success and continued leadership in the market.”
The appointment of a chief legal and compliance officer with Villaseñor’s background signals Coinme’s intent to maintain its proactive stance on regulatory compliance. Since its inception, the company has worked closely with regulators, an approach that has allowed it to operate in 48 states, with New York expected to follow soon.
Industry Context and Future Outlook
Coinme’s recent announcements come amid a period of renewed interest in cryptocurrencies. After the market downturn in 2022, which saw the collapse of several high-profile crypto firms, the industry has been focusing on rebuilding trust and establishing more robust infrastructure.
Coinme’s emphasis on providing physical locations for cash-to-crypto transactions addresses a crucial need in the market. While many crypto enthusiasts are comfortable with purely digital transactions, there remains a significant portion of the population that prefers or requires cash options. This approach also helps bridge the gap for those who may be skeptical or unfamiliar with digital currencies.
“When you create an account with Coinme, you’re also creating a wallet, so, when you put cash in the machine to buy bitcoin, we automatically deposit it into your Coinme wallet,” explains Neil Bergquist. “We handle that complexity, so it feels more like a familiar bank deposit experience.
“You go to our kiosk, you put in your phone number, it opens your account, you deposit cash, and then it deposits the bitcoin into your Coinme wallet. There is no QR code, there’s no scan, there’s no sending it to a third-party wallet at the time of purchase. That’s unique to Coinme and that’s definitely something that has helped improve the user experience.”
Looking ahead, Coinme plans to expand its network beyond its current 40,000 locations and onboard new partners for its crypto-as-a-service offering, which could allow financial services firms to use Coinme’s API to quickly meet growing customer demand for crypto access within familiar platforms.
The recent increase in daily and monthly purchase limits for cash transactions and the introduction of instant loading of purchased crypto into users’ digital wallets at Coinstar kiosks demonstrate Coinme’s commitment to improving user experience and meeting the needs of both novice and experienced crypto users.
“Our mission is to provide more individuals around the world with access to a better financial future via cryptocurrency,” said Bergquist. “This partnership serves that mission and the millions of people who benefit from trusted access to cryptocurrencies.”
