Every day, there seems to be a new blockchain for stablecoins.
Or at least what was felt this week, when USDC (USDC) Circle of issuer announced Arch, its own network of regulating, shortly after that accidentally paying the giant stripe revealed Tempo, built in collaboration with Paradigbab.
They are the latest on a growing list. Startups Plasma and Stable Both raised funds recently to produce dedicated chains for USDT (USDT)the $ 160 billion and largest stablecoin on the market.
Tokenization players are also stacked.
Securitize is Converting the building with Etherna, Ondo Finance announced The upcoming in-house chain earlier this year, and, days ago, Dinari said it was close Launch an Avalanche-Powered Layer-1 network for covering and repairing tokenized stocks.
Stablecoins and Tokenized real-world assets are rapidly growing segments of the crypto economy, and analysts are projecting them to worsen the trillion-dollar classes in the not too distant future. Stablecoins have prepared to interrupt cross-border payments, while tokenization allows traditional instruments such as bonds, funds and stock trade around-the clock with faster repairs to blockchain metals, proponents say.
Read more: Stablecoin payments expected Top $ 1T annually by 2030, says market manufacturer Keyrock
Why build L1s?
Today, most of these tokens live and live in public blockchains such as Ethereum, Solana or Tron. These neutral networks provide those who provide global reach and liquidity, but they also come with some obstacles for assets.
“Developing their own L1 is about control and strategic positioning, not just technology,” said Martin Burgherr, chief client official at Crypto Bank Sygnum.
The stablecoin economy is shaped by the speed of regulation, interoperability, and regulatory alignment, so the “base layer -owner” provides companies that direct compliance, combine foreign exchange engine and ensure unpredictable fees, he said.
There is also a defensive motive. “Today, Stablecoin readers are dependent on Ethereum, Tron or something else for negotiation,” Burgherr said. “That hope means exposure to external fee markets, protocol management decisions, and technical bottlenecks.”
Custom chains allow companies to issue their own gas tokens, control transaction costs and maintain network performance isolated from irrelevant activity that can be dlogged in the network, says Morgan Krupetsky, VP of growth ecosystem in AVA Labs.
Especially, he said, blockchains are becoming “middle and back of office” of a company’s operations, power transactions behind the scenes as facing users can survive in many chains.
“The idea of a company that owns and customizes their end-to-end blockchain infrastructure is increasingly appealing,” he said.
The economy can be more engaging than tech. “The opportunity of income from the owner of the regulating layer is dwarf traditional payment processing margins, Guillaume Poncin, chief technology official on the Web3 Development Platform Alchemy.
He said the new chains could offer additional control and the ability to implement the know-customers (KYC) Checks and other innovations at the protocol level. While L1 can offer full customization, rollups will faster deploy and secure.
In either case, Poncin mentioned, compatibility with Ethereum Virtual Machine (EVM) It makes it easier to combine with other blockchains and adoption speeds.
How can this affect existing L1s?
This is an early way to tell how new chains will affect incumbents, but some networks may feel competitive earlier than others, analysts said.
Coinbase’s analysts led by David Duong argued with a Report on Friday The arch of that circle and the stripe tempo targets high-throughput, low fee payment, which is Solana (Sol) Sweet place. Meanwhile, Ethereum with the base of the user of this institution is more likely to be interrupted in the near term, they write.
The process for entering users can take years, Sygnum’s Burgherr said.
“New enterprises not only require technology, but also years of construction of trust to move the deepest liquidity and maximum payment amount far from incumbent metals,” he said. “Financial rewards institutions have proven security, integration of caution, and stability under stress in the world.”
“That’s why Ethereum remains an institutional ‘Fort Knox,'” he said.
