Stripe and Circle: The Race for Control of Stablecoin Payment Infrastructure
Two fintech giants
#Stripe and
#Circle are entering a new race to control the future of digital payments by building specialized Layer-1 blockchains for stablecoins.
Stripe with Tempo and Circle with Arc
Stripe, with its Tempo project, in collaboration with investment firm Paradigm, is developing a high-performance blockchain compatible with Ethereum. The advantage of Tempo is its ability to integrate directly into Stripe's massive payment network, enabling instant stablecoin transactions, reducing fees and wait times for businesses.
Circle, on the other hand, is taking a different approach with its Arc blockchain, designed around USDC—their own stablecoin. Arc promises near-instant transaction processing speeds, an integrated currency conversion tool, and optional privacy. Circle's vision is to turn Arc into a platform for cross-border payments and multi-currency financial transactions.
The Infrastructure Battle and the Future of Payments
This race shows that major companies no longer just want to build services on existing networks but want to own the underlying platform itself. Controlling infrastructure allows them to optimize speed, cost, and reliability.
In addition to Stripe and Circle, projects like Plasma and Stable (from Tether) are also participating in this battle. Experts believe that controlling infrastructure is "controlling the future of payments." This creates more options for businesses but also poses risks of dependency on a single ecosystem.
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