Most crypto entrepreneurs dream of building the next major exchange. Neil Bergquist chose a different path entirely. Instead of competing with major players for market share, the CEO and co-founder of Coinme decided to power them all. His decade-long bet on infrastructure over direct competition is now generating results as crypto enters mainstream adoption.
The latest validation came in May 2025 when Exodus launched XO Pay, allowing users to buy cryptocurrency directly within their self-custody wallet. What appears to be an Exodus innovation is actually powered entirely by Coinme’s Crypto-as-a-Service platform, demonstrating how Bergquist’s partnership-first approach creates value for multiple parties.
From Competitor to Infrastructure Provider
Bergquist’s transformation from direct competitor to infrastructure enabler reflects market insights gained through operating Bitcoin ATMs since 2014. When Coinme launched as one of the first licensed Bitcoin ATM operators, the company initially competed directly with other exchanges for customer attention.
However, Bergquist recognized that the biggest opportunity wasn’t fighting for existing market share, but expanding access to cryptocurrency services across different industries and platforms. Rather than viewing other crypto companies as threats, Coinme repositioned itself as the infrastructure layer enabling their innovations.
This pivot required significant operational changes. Instead of marketing directly to consumers, Coinme focused on building enterprise-grade APIs. Instead of competing on user experience, the company competed on regulatory compliance and technical reliability.
Partnership Philosophy: Modular Infrastructure
Bergquist’s partnership philosophy centers on providing infrastructure components that companies can integrate based on their specific needs. Most companies recognize consumer interest in cryptocurrency services but lack the regulatory licenses, technical expertise, and operational infrastructure to implement solutions independently.
According to the XO Pay announcement, “Coinme’s CaaS enables a fully native and seamless crypto exchange and payment experience within our partners’ web or mobile apps. By integrating with Coinme’s simple API suite, partners can quickly deploy crypto and stablecoin products and services natively on their front-end while leveraging Coinme’s robust exchange and compliance infrastructure.”
The infrastructure components Coinme provides include payment processing, regulatory compliance, cryptocurrency custody, and fraud prevention. Partners can implement individual capabilities or combine multiple services based on their requirements.
Exodus Case Study: Seamless Integration Success
The Exodus partnership demonstrates the effectiveness of Bergquist’s infrastructure approach. Before XO Pay, Exodus users wanting to buy cryptocurrency had to leave the app, create third-party exchange accounts, complete separate verifications, and manage transfers back to their wallet.
XO Pay eliminates this friction entirely. According to the official announcement, XO Pay is “the first self-custody wallet with native on-ramping” and “eliminates the need for third-party exchanges, providing a seamless crypto buying experience for customers with all the benefits of self-custody.”
Users can now purchase Bitcoin, Ethereum, and other cryptocurrencies using Visa and Mastercard debit cards, Apple Pay, or Google Pay—all within the Exodus interface. The announcement states that customers can “complete purchases in under 60 seconds with quick and easy onboarding,” with crypto automatically deposited into users’ self-custody wallets.
“By creating a Web2 checkout experience in a Web3 self-custody wallet, Exodus has set a new bar for crypto user experience,” Bergquist noted when XO Pay launched. “Exodus’ innovative integration of Coinme’s APIs delivers the seamless in-app purchase flow users expect while keeping them in full control of their assets.”
Revenue Model: Scaling Through Partners
Bergquist’s partnership model creates several advantages over direct customer acquisition. Traditional crypto exchanges spend heavily on marketing and compete intensively for users. Coinme’s partners bring their own customer bases, reducing acquisition costs while providing immediate scale.
The B2B2C approach also potentially generates more predictable revenue streams. Instead of depending on volatile trading volumes from retail customers, infrastructure providers can earn consistent fees from API usage and transaction processing.
Each new partner can increase platform value without proportionally increasing operational costs. The same compliance systems and payment infrastructure can serve multiple partners simultaneously.
Technical Achievement Through Collaboration
The success of partnerships like XO Pay demonstrates the technical sophistication required to make crypto integration appear seamless. Background systems must manage regulatory requirements across multiple jurisdictions, prevent fraud while minimizing user friction, and coordinate between traditional payment methods and blockchain settlement.
According to JP Richardson, Co-Founder and CEO of Exodus, “XO Pay represents our commitment to making cryptocurrency more accessible to everyday customers. By integrating the purchasing process directly into our mobile wallet, we’re removing barriers and simplifying the journey from fiat to crypto, and back.”
The partnership enables Exodus to focus on user experience and wallet functionality while Coinme handles regulatory compliance, payment processing, and technical infrastructure. This division of labor allows both companies to concentrate on their respective strengths.
Rather than betting on specific crypto applications, Bergquist has built infrastructure that enables others to innovate while benefiting from their collective success. The partnership approach positions Coinme to capture value regardless of which specific use cases prove most successful—a potentially winning strategy in an industry known for unpredictable innovation cycles.