The payments industry continues to go through a massive, global transformation this year.

Two giants in the space (Stripe and Circle) recently announced the launching of native layer-1 blockchains.

For non-fintech folk, this might seem like a foreign or futuristic concept. The reality is, this move may completely revamp how money moves globally.

In this edition, our team covers what’s happening, why it matters, and potential impact to the future of payments. We’ll also explore what it means for businesses, consumers, and the global financial system as we head toward 2026.

If you’re new to blockchains or stablecoin discussions, don’t worry — we have you covered with easy-to-follow breakdowns.

What is a Blockchain (in Simple Terms)?

Before diving into Stripe and Circle’s announcement, let’s cover the basics.

A blockchain can be thought of as a digital record book — shared across thousands of computers.

Instead of one company or government owning this book/ledger — everyone can view the same copy. This makes it nearly impossible to edit or forge past transaction history.

Taking it a step further — think of blockchain as ‘the internet of money.’ Similar to the internet allowing for emails to be instantly sent globally, blockchains enable instant money transfers. No need for a bank as an intermediary. The transfers take place with cryptocurrency (such as stablecoins) instead if fiat currencies (such as US dollar, Euro, or GBP).

A stablecoin is pegged to a stable asset (such as the U.S. dollar tied to USDC or USDT), which prevents fluctuations in value that can lead to losses.

A Layer-1 (L1) blockchain is a foundational network that allows for transacting in a specific type of crypto (e.g. Bitcoin, Ethereum).

So when Stripe announces “Tempo” and Circle unveils “Arc” (both L1 blockchains), they’re actually building entire new networks optimized for stablecoin payments and financial use cases. This type of build & launch enables each company to have much more direct control (vs. a 3rd party blockchain, such as Ethereum).

👉 For a deeper dive into how blockchains are being used in global payments, check out our article on the future of cross-border payments.

We also recap the definitions and top Q&A in our FAQ section (at the end of this article).

Who Are Stripe and Circle?

You’ve probably used Stripe without realizing it.

Stripe is the payments processor behind many online checkouts—from buying clothes online to paying for a subscription service. Their mission is to make payments easy for businesses of all sizes.

Circle, on the other hand, is best known for creating USDC (USD Coin), a type of cryptocurrency called a stablecoin — tied to the U.S. dollar. This makes it useful for payments, since $1 in USDC is always worth about $1.

Stablecoins can already make international payments faster and cheaper. Instead of waiting days for a bank transfer, you can send USDC instantly, like sending a text message.

Stripe and Circle want to make this technology mainstream.

Together, these two companies are not just testing out blockchain — they’re actively pushing the envelope in payments with a faster, inexpensive, and more global method.

Stripe and Circle Launching Blockchains: What Does It Mean?

Most companies in fintech use existing blockchains like Ethereum or Solana.

But Stripe and Circle are going a step further — they’re building their own layer-1 blockchains.

By building their own, they gain more control over speed, costs, and security. They also ensure that their networks are designed specifically for payments—not for gaming, NFTs, or speculation.

In other words, this isn’t about hype.

It’s about building a blockchain that works for real-world money movement.

How Will This Change Payments?

Right now, moving money across borders is expensive.

Banks use a system called SWIFT, which can take days and costs high fees.

Blockchains eliminate the middlemen, making transfers faster and cheaper.

Imagine you’re a small business in Mexico selling to customers in the U.S. With traditional banks, it could take several days to get paid. With Stripe and Circle’s blockchain, you could receive funds instantly in USDC, convert it to pesos, and reinvest in your business — all within minutes.

This shift has the potential to save businesses billions in fees every year.

Why 2026 Could Be the Breakthrough Year

Stripe and Circle’s announcement comes at a time when regulators, banks, and fintechs are all paying closer attention to digital money.

By 2026, we could see:

Widespread adoption of stablecoins for cross-border payments.
Banks and fintechs partnering with blockchain-based networks.
Consumers using digital wallets for everyday purchases powered by stablecoins.

The combination of blockchain speed and stablecoin stability could push digital payments into the financial mainstream.

What do these new blockchains mean for the broader financial and fintech landscape?

Let’s explore how they could reshape payment systems, regulation, and competition.

The Strategic Implications

Control & Efficiency
Owning the base layer means Stripe and Circle control transaction fees, network performance, and upgrade flows. No longer hostage to congestion or high fees on Ethereum.
Compliance & Regulation
With custom chains, they can bake KYC (Know Your Customer) and privacy options into the protocol itself — something legacy public chains can’t offer easily. Arc even integrates privacy layers and institutionally-aligned data features.
Developer Ecosystem
EVM compatibility means existing Ethereum developers can launch on Tempo and Arc with minimal friction — boosting adoption and reducing integration cost.
Competition & Network Effects
A wave of corporate blockchains — from Plasma (USDT), Converge (Securitize), Dinari, Ondo, and more — means the stablecoin/blockchain landscape is fragmenting. This could erode general-purpose network dominance but also fosters targeted ecosystems.

What’s Next in 2026 and Beyond

Onchain Payments Go Mainstream
Tempo and Arc can lower cross-border costs, settlement times, and dependence on legacy rails. This could make stablecoin-based payments a default for global transfers.
Staking & Yield Innovation
Custom chains unlock new token models (such as staking, validator economics, MEV capture) enabling providers to monetize infrastructure directly.
Strategic Industry Shift
As fintechs launch AI and payments products on their own blockchains, integrated rails could become a competitive advantage — and a differentiator from banks and legacy networks.

Building their own blockchains isn’t a crypto stunt.

It’s a foundational strategy to deliver scalable, compliant, and efficient payment systems.

If 2025 was exploratory, 2026 will be the year these chains go to work — for enterprises, merchants, and wallets alike.

Risks and Challenges Ahead

Governments are still figuring out how to regulate blockchains and stablecoins.

There are also risks around security and fraud. And since Stripe and Circle will be running their own blockchains, they’ll need to win trust that these systems are reliable. That said, both companies have strong track records.

Stripe has been the go-to payment processor for tech companies for years.

Circle’s USDC is one of the most trusted stablecoins on the market. If anyone can pull this off, it’s them.

What It Means for Businesses and Consumers

For businesses, this could mean lower fees, faster payments, and access to new global markets. Instead of worrying about slow wires or currency conversions, money could flow instantly.

For consumers, it could mean cheaper remittances, faster online payments, and more choices when paying abroad. It could also create more competition, pushing banks and other providers to lower their fees.

In short, it’s about making money movement as easy as sending an email.

Quick List of FAQs + Takeaways for Non-Experts

1. Define blockchain, Layer-1 (L1) blockchain, and stablecoin.

Blockchain: a secure, shared database in which multiple participants (instead of a centralized authority) maintain the ledger together.

Layer-1 (L1) blockchain: This is the core network (i.e. the foundation). Examples of major L1 blockchains are Bitcoin & Ethereum. Ethereum also has Layer-2 solutions, or add-ons built on top of it, which still rely on Ethereum (L1).
Stablecoin: A digital dollar or euro — cryptocurrency that stays pegged to fiat. which enables transparent payment transacting. In the example of USDC, stablecoins are backed 1:1 with U.S. dollars held in reserve.

2. What is Stripe’s new blockchain?

Stripe is building its own layer-1 blockchain to power faster, cheaper payments for businesses and consumers.

3. What is Circle’s role in blockchain payments?

Circle issues USDC stablecoins, which are tied to the U.S. dollar and used to send money instantly across blockchains.

4. How are blockchains different from traditional banking rails?

Unlike banking systems like SWIFT, blockchains allow real-time, low-cost transfers without middlemen.

5. Why are stablecoins important?

Stablecoins like USDC make digital money reliable and predictable, unlike cryptocurrencies such as Bitcoin which fluctuate in price.

6. What does this mean for the future of payments?

By 2026, we could see stablecoin-based payments become common in business transactions, e-commerce, and cross-border money transfers.

Key Takeaways for Non-Experts

Not all blockchains are public anymore. Today’s web3 includes private or specialized chains like Tempo and Arc built by companies for specific use cases.
Stablecoins are digital dollars: They don't fluctuate like crypto—they offer a bridge from traditional finance to blockchain.
Custom rails = control and performance. Stripe and Circle are not just building features—they’re optimizing the entire payment stack.
Comply-first design matters. Embedding regulatory safeguards at the protocol level helps mainstream adoption.
Adoption depends on interoperability. Even custom chains must connect to broader ecosystems—Arc is EVM-compatible; Tempo likely will be too.

Final Thoughts

Whether you’re a payments strategist, product manager, or finance executive, this is the moment to pay attention.

These are not Blockchain 101 projects—they’re fintech-native rails. Understand them, assess them, and be ready to engage with them by 2026.

Stripe and Circle are making a bold move by building their own blockchains.

This isn’t just a tech experiment—it’s a signal that the future of money is digital, instant, and borderless.

For businesses, consumers, and the financial industry, the next few years could be transformative.

The takeaway? Blockchains and stablecoins are no longer niche technologies. With major players like Stripe and Circle leading the way, they’re becoming the foundation of the payments system of tomorrow.

👉 Want more insights like this? Explore our latest stories on fintech innovation and disruptors reshaping finance.

Stripe and Circle’s Blockchain Bet: What It Means for Payments in 2026 and Beyond