Circle and Stripe have launched their own blockchains, Arc and Tempo, which may change the dynamics of payment systems in the cryptocurrency sector.
Launch of Arc and Tempo
Circle and Stripe launched their blockchains, Arc and Tempo, to enhance control over payments and improve settlement efficiency. This move marks a significant change 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."
Potential of the New Blockchains
The launch of Arc and Tempo is poised to significantly influence the crypto payments landscape. Both blockchains aim to improve settlement processes and facilitate integration, potentially affecting existing stablecoin protocols. Analysts predict possible disruptions to Ethereum as Arc and Tempo evolve, though the immediate impact remains limited due to Ethereum's strong institutional base.
Linking to Previous Initiatives
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. According to Kanalcoin, this development signifies a growing trend of fintechs building proprietary networks for strategic control.
The launch of the Arc and Tempo blockchains represents a strategic move for Circle and Stripe, which could alter the competitive environment in crypto payments by creating new opportunities for integration and optimization of payment systems.
