Circle and Stripe are diving into the blockchain fray, unveiling bespoke networks to support their stablecoin ambitions. Last week, Circle introduced Arc, its proprietary settlement network, while Stripe inadvertently disclosed its collaboration with Paradigm on Tempo. The move underscores a broader trend: companies are increasingly launching their own blockchains, ostensibly to gain more control over their financial ecosystems.
The Blockchain Rush
In recent months, the blockchain space has seen a surge of activity. Startups like Plasma and Stable have secured funding to develop dedicated chains for USDT, the largest stablecoin with a sprawling $160 billion market cap. Meanwhile, players in the tokenization sector aren’t sitting idle. Securitize is crafting Converge with Ethena, Ondo Finance has plans for its in-house chain, and Dinari is on the verge of launching an Avalanche-powered network for tokenized stock clearing. This aligns with the broader trend of expanding the tokenized real-world asset market, as detailed in our recent coverage of GSR and DigiFT’s OTC trading initiatives.
The rationale? Stablecoins and tokenized real-world assets are rapidly burgeoning sectors within the crypto economy. Experts predict they could balloon into trillion-dollar asset classes in the not-so-distant future. As these segments grow, the need for bespoke, efficient blockchain infrastructure becomes ever more pressing.
Why Go It Alone?
So, what’s driving this trend of companies building their own Layer 1 blockchains? “It’s about control and strategic positioning, not just technology,” Martin Burgherr, chief clients officer at crypto bank Sygnum, noted. By constructing their own base layers, firms can embed compliance, integrate foreign exchange mechanisms, and ensure predictable fees.
Morgan Krupetsky from Ava Labs added that custom chains provide the luxury of issuing proprietary gas tokens. This control helps manage transaction costs and isolates network performance from unrelated activities that could congest public chains. As blockchains increasingly form the backbone of companies’ operations, the appeal of tailor-made infrastructure grows.
More intriguingly, the financial upside of owning the settlement layer could eclipse traditional payment processing margins. Guillaume Poncin, CTO at Alchemy, believes the potential revenue from these custom chains is vast. “The economics can be even more compelling than the tech,” he remarked.
A Competitive Landscape
The burgeoning landscape of proprietary blockchains raises questions about the future of incumbent networks like Solana and Ethereum. A report from Coinbase analysts led by David Duong suggests that Circle’s Arc and Stripe’s Tempo are zeroing in on high-throughput, low-fee payments—territory that Solana currently dominates. However, Ethereum, with its robust institutional user base, seems less vulnerable to immediate disruption.
Building trust in these new networks will take time. “New entrants will need not just technology, but also years of trust-building to shift the deepest liquidity and highest-value payments away from incumbent rails,” Burgherr explained. Security, custody integration, and resilience under real-world stress remain paramount for financial institutions. This is particularly relevant as the market for tokenized real-world assets continues to evolve, as highlighted in our article on Animoca’s NUVA marketplace launch.
Thus, while the potential for disruption is significant, the path forward is fraught with challenges. As these new blockchains develop and mature, the industry’s landscape may shift. But for now, Ethereum retains its crown as the go-to choice for institutions—its “Fort Knox” reputation firmly intact.
In the end, the push for proprietary blockchains reflects both the evolving demands of the crypto market and the allure of owning one’s digital destiny. As companies continue to innovate and expand their blockchain capabilities, the coming years promise to be a fascinating chapter in the ongoing evolution of the crypto economy. But whether these aspirations will materialize into long-term success remains an open question.
Source
This article is based on: Why Circle and Stripe (And Many Others) Are Launching Their Own Blockchains
Further Reading
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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.
