The Evolving Blockchain Landscape
The blockchain landscape is evolving as prominent companies such as Circle and Stripe embark on the development of their own proprietary blockchains. This move mirrors a growing trend among various startups focused on establishing stablecoin and asset-tokenization ecosystems.
Emerging Projects and Collaborations
For instance, projects like Plasma and Stable have successfully secured funding to create dedicated chains for Tether (USDT). Similarly, Securitize is joining forces with Ethena to work on a project known as Converge, while Ondo Finance recently announced its plans for a new native blockchain. Furthermore, Dinari has revealed intentions to launch a layer-1 network built on Avalanche technology, specifically aimed at streamlining the settlement and clearance of tokenized stocks.
Strategic Control and Market Positioning
According to Martin Burgherr, Chief Client Officer at cryptocurrency bank Sygnum, the creation of a proprietary layer-1 solution is fundamentally about gaining control and strategically positioning businesses within the market.
He highlights that the economics tied to stablecoins are heavily influenced by factors such as settlement speed, interoperability, and the necessity for regulatory alignment. By constructing their own foundational blockchain layer, companies can incorporate compliance measures directly into their operations while also integrating foreign exchange engines, thereby ensuring more predictable transaction fees.
Risks of Dependency on Established Blockchains
Burgherr also points out a protective aspect of this strategy; many stablecoin issuers currently depend on established blockchains like Ethereum or Tron for their settlement processes.
This dependency exposes them to significant risks, including fluctuating external fee markets, potential shifts in protocol governance, and technological constraints that could hinder their operations. As more entities explore the prospect of building their own blockchains, this trend reflects a broader desire for autonomy and reliability in the issuance and management of digital assets.
