Circle and Stripe are launching their own blockchains, Arc and Tempo, to enhance stablecoin payment capabilities and drive competition in the crypto payments sector.
Their launches aim to reduce costs, increase control, and potentially reshape payment processing dynamics, impacting existing blockchain infrastructure and stablecoin usage.
Circle and Stripe Unveil Arc and Tempo Chains
Circle and Stripe have launched their proprietary blockchains, Arc and Tempo, respectively. This move aims to enhance control over payments and settlement efficiency, marking a significant shift in the crypto payments sector. According to Tom Schmidt, General Partner at Dragonfly,
“Circle is being defensive and reactive. And Stripe is thinking about the future of payments and the future of their business, and being offensive and proactive.”
The launch involves Circle, known for USDC, and Stripe, a leading payments company. These entities aim to vertically integrate stablecoin technology, potentially altering competitive dynamics within the industry.
Arc and Tempo: Potential Game-Changers in Crypto Payments
The launch of Arc and Tempo is poised to influence the crypto payments landscape significantly. Both blockchains aim to improve settlement processes and facilitate integration, which could affect existing stablecoin protocols.
Analysts predict possible disruptions to Ethereum as Arc and Tempo evolve. However, immediate impact remains limited due to Ethereum’s strong institutional base, though the long-term financial implications could reshape payment systems.
Linking Past Efforts to Future Payment Networks
This blockchain launch mirrors previous movements, like Tether’s establishment of payment-focused systems. Past efforts by Coinbase and Robinhood further underscore the trend towards custom payment networks.
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