Key Points:
Rumors are circulating in the crypto community that Stripe may launch its own Layer 1 blockchain network (L1). Combined with its recent acquisitions of Bridge and Privy, launching a proprietary blockchain may be a reasonable next step.
As a leading global payment service provider (PSP), Stripe connects merchants, acquirers, card networks, and issuing banks at a technical level to ensure smooth and secure transactions.
If Stripe really launches L1, it is expected to support stablecoin payments as well as customer payments and merchant settlements in the basic scenario; in an optimistic scenario, it could revolutionize the payment system with the following features:
Enabling direct payments that bypass issuing institutions and networks;
Supporting micropayment subscription services that cannot be realized in traditional systems;
Generating revenue from short-term deposit balances on Stripe L1.
Stripe currently operates mainly as a payment gateway and acquirer, but if it launches Stripe L1, it will allow it to take on roles traditionally handled by issuing banks and card networks, which would mark an important milestone in the history of the payment industry.
Will Stripe really launch its own blockchain network?
Recently, the crypto community has been rumored that global payment infrastructure company @Stripe may be preparing to launch a Layer 1 blockchain (L1). Another rumor is related to Paradigm's recent secret recruitment efforts, which some speculate is for Stripe's L1 blockchain plans.
Although no one outside insiders knows for sure whether Stripe will launch L1, considering the recent surge in interest from the traditional American financial sector in blockchain and stablecoin industries, as well as the ongoing efforts by card network companies (such as Visa and Mastercard) to increase blockchain integration, coupled with Robinhood's announcement to tokenize stocks through Arbitrum, these factors have quickly attracted community attention to the rumors surrounding Stripe launching L1.
Stripe's mission is to 'drive the growth of internet GDP.' The company focuses on building the infrastructure of the global economy, helping businesses of all sizes, from startups to large enterprises, manage payments, operations, and growth online. From this perspective, blockchain technology is highly attractive to Stripe.
In fact, Stripe has been actively expanding its blockchain-related business in recent years. In February 2025, Stripe acquired stablecoin infrastructure company Bridge (@Stablecoin) for about $1.1 billion, strategically consolidating its position in stablecoin-based financial infrastructure. Building on this, Stripe launched its stablecoin financial account service at the Stripe Sessions event in May 2025.
Stripe's stablecoin financial account services now cover 101 countries, providing businesses with the following capabilities:
Holding USDC issued by Circle and USDB issued by Bridge;
Conducting USD transfers via ACH/wire transfer and EUR transfers via SEPA to facilitate stablecoin deposits and withdrawals;
Supporting access to USDC across multiple blockchain networks, including Arbitrum, Avalanche C-Chain, Base, Ethereum, Optimism, Polygon, Solana, and Stellar.
This means that businesses in 101 countries can easily access dollar-pegged stablecoins through Stripe and seamlessly integrate with traditional banking systems for convenient dollar deposits and payment functionalities.
Additionally, in June 2025, Stripe acquired the Web3 wallet infrastructure startup @privy_io. This company offers multiple features, including wallet creation via email or single sign-on (SSO), transaction signing, key management, and gas abstraction services.
Combining these actions, the rumors that Stripe may launch a Layer 1 blockchain (L1) do not seem unfounded. In other words, Stripe already has stablecoin infrastructure and wallet infrastructure, and launching a blockchain network that can synergize with these resources may be the natural next step in its blockchain business expansion.
What possibilities would arise if Stripe launched a Layer 1 blockchain (L1)?
Of course, there is currently no conclusive evidence that Stripe will launch L1; this is just a rumor. However, we can boldly speculate on how Stripe might be used if it really launches its own L1 and what services it could achieve that traditional payment systems cannot. The ideas listed below are entirely my personal conjecture, and everyone can view them lightly, treating them as thoughts of 'Oh, so blockchain can be used in payment services like this.'
2.1 Stripe's Role as a Payment Service Provider (PSP)
To understand which aspects blockchain can improve, we first need to understand the types of services that Stripe offers. As one of the world's most well-known payment service providers (PSP), Stripe acts as a technical bridge between merchants, acquirers, card networks, and issuing banks, ensuring a smooth and secure payment process. Specifically, Stripe undertakes the following roles:
Payment Gateway:
When customers pay online or offline using bank cards, Stripe securely collects card information, encrypts it, and transmits it to card networks and issuing banks.
Support for Multiple Payment Methods:
Integrating multiple payment options, including credit cards, digital wallets, bank transfers, and local payment methods, to provide convenience for customers and merchants.
Fraud Detection and Security Assurance:
Preventing fraudulent transactions through a machine learning-based fraud detection system and PCI-DSS compliant security measures.
Multi-Currency and International Payment Support:
Providing automated currency conversion services, supporting multi-currency transactions to facilitate international sales.
Reports and Analysis:
Providing merchants with detailed transaction history, success rates, and customer behavior analysis to help optimize business operations.
Technical Integration and Operational Support:
Helping businesses easily build payment systems through APIs and SDKs while handling customer support, regulatory compliance, refunds, and billing management.
Enhancing Customer Experience:
Providing fast and smooth payment processes while supporting various scenarios such as subscription billing, installment payments, and refunds.
Merchant Settlement Intermediary:
PSPs collaborate with acquirers or act directly as acquirers, settling funds received from issuing banks to merchants.
Without the existence of a PSP, merchants would have to support various payment methods themselves and directly sign complex contracts with acquirers. This would not only increase the technical and operational burden on merchants but also significantly diminish the payment experience for both merchants and customers.
2.2 What Changes Will Stripe L1 Bring?
If Stripe launches a Layer 1 blockchain (L1), how might it optimize existing services and create new functionalities? Here are some ideas:
2.2.1 Basic Scenarios
Integration of Merchant Stablecoin Financial Accounts with Stripe L1
Currently, Stripe provides stablecoin financial account services to merchants in 101 countries, enabling them to hold USDC and USDB stablecoins and make deposits and withdrawals through traditional banking systems (such as ACH, SEPA) and multiple blockchain networks.
If Stripe L1 goes live, it is expected that stablecoin financial account services will also support deposits and withdrawals through Stripe L1. In addition, merchants can use their stablecoin balances on Stripe L1 to participate in various financial activities.
Merchant Stablecoin Settlement Options
As a payment service provider (PSP), Stripe typically collaborates with acquirers or acts directly as an acquirer to process merchants' sales revenue settlements. If Stripe L1 goes live, merchants may choose to settle in dollar-pegged stablecoins. This would be a huge benefit for merchants who have high demand for dollars but limited access channels.
Customer Wallet Services
Stripe previously acquired Privy, a company providing wallet infrastructure, enabling users to easily create and use wallets. Although Stripe primarily serves merchants and businesses and has not yet provided wallet services to individual users, if Stripe L1 leverages Privy's technology, it may support individual users in easily creating Web3 wallets on Stripe L1, making payments with stablecoins, and participating in various financial activities within the Stripe L1 ecosystem.
Customer Stablecoin Payment Options
Currently, customers using Stripe for online payments are limited to traditional payment methods such as bank cards, bank accounts, and others. If Stripe L1 goes live, it may allow users to connect Web3 wallets (potentially provided by Stripe or third parties) and choose stablecoins as a payment method.
2.2.2 Bull Market Cases
Direct payments between customers and merchants
Traditional payment systems (such as credit cards or bank accounts) rely on traditional financial networks, such as card networks and banks. However, if Stripe L1 allows customers to pay merchants directly using stablecoins, it could eliminate the involvement of issuing banks and card networks, significantly accelerating settlement speed and reducing costs. Of course, since payment settlements on the blockchain are hard to reverse or refund, appropriate protective measures need to be established to ensure transaction security.
Micropayment-based Subscription Services
Blockchain can support micropayments and streaming subscription models that traditional systems cannot achieve. Currently, subscriptions through Stripe mostly adopt monthly or annual renewal models, while Stripe L1 has the potential to implement per-minute billing subscription services. Users will pay based on actual usage, and all payments can be automatically completed through smart contracts. This new subscription model will provide development space for various services built on this system.
DeFi Applications for Short-Term Deposits
One reason for the settlement delays in current payment systems is to prepare for issues such as fraud, cancellations, or refunds. Therefore, even if Stripe L1 supports customers paying merchants directly with stablecoins, these funds may be temporarily held in Stripe L1 and not immediately released to merchants.
These short-term deposits are expected to be substantial, potentially becoming a significant liquidity pool for Stripe L1. For example, these funds could serve as liquidity supply to DeFi protocols for lending markets or be invested in bonds to earn interest, significantly improving capital efficiency.
Summary Thoughts
After conducting long-term research on stablecoins and observing industry and ecosystem developments, the rumors about Stripe L1 are indeed intriguing. So far, payment companies like Visa, Mastercard, and PayPal have only viewed blockchain and stablecoins as additional features. If Stripe really launches its own Layer 1 blockchain (L1), it could become a historic moment in the field of payment systems, signaling the beginning of a paradigm shift.
Stripe has always played the role of a payment gateway or acquirer, but the introduction of Stripe L1 may allow it to take on the functions of both card networks and issuing banks. Additionally, with the help of blockchain technology, it can significantly enhance payment efficiency and realize previously impossible functions, such as micropayment subscription services and automated management of short-term deposits.
We are in an era of payment system innovation driven by blockchain. Whether Stripe will really launch L1 as rumored remains to be seen.
This article is collaboratively reprinted from: Deep Tide
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