The crypto world is buzzing with a flurry of blockchain launches, and not without reason. This week, Circle and Stripe revealed plans for their own settlement networks—Arc and Tempo, respectively—marking a shift towards proprietary blockchain infrastructures. As stablecoins and tokenized assets gain momentum, companies are keen to seize control of their base layers for strategic advantages.
A New Era of Proprietary Blockchains
In recent days, Circle’s announcement of Arc and Stripe’s inadvertent reveal of Tempo have underscored a burgeoning trend: companies building their own blockchains. Venture-backed startups like Plasma and Stable are also diving into the fray, aiming to develop dedicated chains for the colossal $160 billion stablecoin market leader, USDT. Meanwhile, firms such as Securitize and Dinari are crafting their networks to facilitate the seamless settlement of tokenized real-world assets. For more details on Circle’s financial backdrop, see Circle Unveils Layer-1 Blockchain Arc, Reports $428 Million Q2 Loss.
Martin Burgherr, Chief Clients Officer at crypto bank Sygnum, elaborates on this strategic pivot: “Building their own L1 is about control and strategic positioning, not just technology.” By owning the base layer, companies can embed compliance protocols, integrate foreign exchange engines, and ensure predictable transaction fees. Moreover, the shift reduces reliance on existing networks like Ethereum and Tron, mitigating exposure to external fee markets and governance decisions.
The Lure of Control and Profit
Industry insiders are keenly aware of the potential financial upsides. Guillaume Poncin, CTO at Alchemy, suggests that revenue from owning the settlement layer could dwarf traditional payment processing margins. Companies can issue their own gas tokens, manage transaction costs, and maintain network performance without interference from unrelated activities. “The revenue opportunity from owning the settlement layer,” he says, “will dwarf traditional payment processing margins.”
Morgan Krupetsky, VP of Ecosystem Growth at Ava Labs, notes that blockchains are evolving into companies’ “middle and back office,” handling transactions behind the scenes while user-facing applications remain versatile across multiple chains. The allure of end-to-end blockchain infrastructure is growing, with firms eager to customize their networks for specific operational needs. For a closer look at Circle’s blockchain plans, refer to USDC issuer Circle to launch new layer-1 Arc blockchain this year.
Future Prospects and Competition
The implications for existing Layer 1 networks are significant, though uncertain. Analysts at Coinbase, led by David Duong, highlight that Circle’s Arc and Stripe’s Tempo are poised to challenge high-throughput, low-fee payment niches, a domain currently dominated by Solana. Ethereum, with its strong institutional user base, appears less vulnerable in the immediate future. However, the path to shifting liquidity and high-value payments away from established networks will demand not just technological prowess but also years of trust-building.
Burgherr of Sygnum emphasizes the importance of proven security and resilience under real-world stress. “Financial institutions prize security and custody integration,” he notes, positioning Ethereum as the “institutional ‘Fort Knox.’” The challenge for newcomers will be to establish similar levels of trust and reliability.
As we look ahead to the rest of 2025 and beyond, the crypto landscape is poised for significant evolution. The race is on for companies to not only innovate technologically but also build the confidence needed to sway users from incumbent rails. With stablecoins and tokenized assets projected to swell into trillion-dollar asset classes, the stakes have never been higher. The question remains: will these new blockchains redefine the financial ecosystem, or will they merely complement the giants that already stand tall?
Source
This article is based on: Why Circle and Stripe (And Many Others) Are Launching Their Own Blockchains
Further Reading
Deepen your understanding with these related articles:
- Stripe Building Payments Blockchain ‘Tempo’ With Paradigm: Fortune
- Stripe To Build ‘Tempo’ Payments Blockchain With Paradigm: Fortune
- Stripe Taps Paradigm’s Matt Huang to Lead New Blockchain Tempo: Fortune
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
