Why are fintech companies rushing to build their own Blockchain from Stripe to Circle?

Author: Ben Weiss, Fortune Magazine

Compiled by: Luffy, Foresight News

Building one's own blockchain has become a new trend in the fintech sector. The American cryptocurrency exchange Coinbase has its own blockchain; online brokerage Robinhood announced plans to launch its own blockchain in June, and its competitor eToro is also considering following suit. Now, fintech giant Stripe and stablecoin issuer Circle have also joined this ranks.

According to a deleted job posting and sources familiar with the matter, Stripe is developing a blockchain called Tempo, focusing on payment functions. Meanwhile, Circle announced on Tuesday morning that it is building Arc, a blockchain specifically designed for stablecoins.

Enterprise blockchain has suddenly emerged like mushrooms after rain, raising a question: Why do all major financial companies (especially Stripe and Circle) seem to be transforming into blockchain developers?

Master the complete technology stack

Two executives in the stablecoin sector and an investor stated that Stripe's motivation is simple: vertical integration.

By acquiring the stablecoin startup Bridge for $1.1 billion, Stripe has taken control of its own stablecoin and payment network revenue. After acquiring the cryptocurrency wallet company Privy in June, it can also provide users with accounts to store stablecoins. For Stripe, which is known for traditional payment services like online checkout, the addition of blockchain business means building a mature stablecoin ecosystem.

Rob Hadick, a general partner at the crypto venture capital firm Dragonfly, often invests in stablecoin startups. He told Fortune magazine: "These large companies have the motivation to control the entire technology stack."

Stripe is confident that stablecoins are the future of payments. If a large portion of its $1.4 trillion transaction volume is completed via stablecoins, it could miss out on millions of dollars in revenue.

Blockchain is similar to Google Cloud or Amazon Web Services within the stack of cryptographic technologies. A group of decentralized servers handles numerous transactions on cryptocurrency applications, and server owners are compensated for providing computing power.

For example, according to data from DefiLlama, Coinbase's own blockchain Base has generated over $130 million in fees since its launch at the beginning of 2023.

Luca Prosperi, co-founder and CEO of stablecoin infrastructure company M0, told Fortune magazine: "Everyone wants to control the economy."

However, it remains to be seen whether the surge in stablecoins and their associated blockchains will make it difficult for ordinary consumers to cope with the ever-emerging tokens and blockchains.

Stripe did not respond to the comment request.

Defense and Offense

Circle CEO Jeremy Allaire

Circle's motivation is similar.

The stablecoin issuer that went public in June has its own token USDC and has established an ever-growing payment network, even offering services that allow enterprise clients to create their own cryptocurrency wallets. However, this cryptocurrency company does not yet have its own blockchain and cannot collect fees from the payment transaction volume in its services.

"They also want to control this aspect of the flow of funds," said Bam Azizi, co-founder and CEO of cryptocurrency payment startup Mesh, when discussing Circle.

However, Stripe and Circle are not in the same situation. Stripe is one of the largest private companies in the tech sector, and as a leading payment processor, it has diverse sources of revenue. Just this January, its Stripe Billing business had an annual revenue of 500 million dollars.

In contrast, Circle's revenue in the second quarter of 2025 comes from interest generated by U.S. Treasury bonds backing its stablecoin, accounting for over 96% of its income. If interest rates decrease, its entire business model could be at risk.

Circle CEO Jeremy Allaire said in an interview with The Information regarding the company's second-quarter performance: "We are building a complete system, from the infrastructure layer to the stablecoin layer, and then to the payment network layer." A Circle spokesperson declined to comment further.

Nevertheless, some people believe that this newly listed company is catching up with its competitors.

"Circle adopts a defensive and passive response strategy," said Hadick, a general partner at Dragonfly, "while Stripe focuses on the future of payments and its own business, taking an offensive and proactive approach."