In recent times, there has been a notable surge in new blockchain projects, particularly focusing on stable cryptocurrencies and the tokenization of real-world assets. This week, the issuer of USDC, Circle, announced its payment network called Arc. Concurrently, Stripe inadvertently revealed Tempo, a blockchain developed in collaboration with Paradigm. These developments indicate an increasing trend among companies in this field towards the creation of proprietary blockchain networks.
Growing Investments and New Platforms
Startups like Plasma and Stable have secured significant funding focused on the development of blockchain networks tailored specifically for USDT. Furthermore, Securitize, in partnership with Ethena, is working on Converge, a corporate blockchain. Companies such as Ondo Finance and Dinari have also disclosed plans to initiate their own blockchain projects to facilitate the exchange and settlement of tokenized assets.
According to industry analysts, the market for stable cryptocurrencies and tokenized assets has the potential to evolve into trillion-dollar asset classes in the near future. Stablecoins are expected to significantly transform international payments due to their inherent benefits. Meanwhile, tokenization technology streamlines the use of blockchain infrastructure to enable traditional financial instruments to process transactions rapidly and at any time.
Reasons Behind Establishing Proprietary Blockchain Networks
Currently, most tokens in this sector operate on public blockchains such as Ethereum 
$3,094, Solana 
$139, and Tron. While these networks offer global accessibility and liquidity, they also impose various restrictions. Martin Burgherr, the head of customer relations at Sygnum crypto bank, notes that the motivation for companies to create their own blockchain networks goes beyond technical aspects.
According to Burgherr, possessing the foundational layer of the network enables companies to directly integrate regulatory compliance, manage currency transactions, and ensure predictable transaction fees. Relying on existing public networks exposes stakeholders to external fee markets, governance decisions, and technical bottlenecks.
Morgan Krupetsky, Vice President responsible for ecosystem growth at Ava Labs, states that customized chains allow companies to monitor transaction costs and maintain control over network performance. He also highlights the increasing pivotal role of blockchain technology as a fundamental element supporting corporate operations.
Alchemy CTO Guillaume Poncin suggests that the revenue opportunities derived from such new networks could surpass traditional payment systems. He also points out that new networks might more easily integrate client identification processes and other innovations. Poncin emphasizes that compatibility with the Ethereum Virtual Machine facilitates both the adoption and integration of new networks with other blockchains.
Potential Impacts on Existing Blockchain Networks
Analysts suggest that the newly established blockchains might not significantly impact existing large networks in the short term. Nonetheless, some networks could be more susceptible to competition-related effects sooner. Coinbase analysts highlight that Circle’s Arc and Stripe’s Tempo projects aim for swift and low-fee payments, aligning particularly with Solana’s focus. Despite this, Ethereum is anticipated to maintain its current position in the short term due to its substantial user base.
Burgherr from Sygnum asserts that it could take years for new projects to attract users. He emphasizes that financial institutions prioritize security, custodial integration, and resilience under challenging conditions.
