Stablecoin Issuers and Fintechs Rush to Control Payment Rails

Stablecoin issuers and fintech companies have recently accelerated the development of payment-focused blockchains, seeking to capture a significant share of the growing stablecoin market. This trend represents a shift away from generic blockchain infrastructure toward specialized networks designed for institutional payment flows.

The emergence of these new blockchains has been driven by the increasing demand for efficient and cost-effective settlement infrastructure behind US digital-dollar transfers. Companies like Tether and Circle have launched their own public L1 networks, optimized for cross-border transactions, in an effort to control more of the settlement layer.

Fintech giants like Stripe are also expanding their presence in the stablecoin market through strategic acquisitions. In 2024, Stripe acquired Bridge, a stablecoin infrastructure startup, for $1.1 billion. The company has since made further acquisitions, positioning itself to control various layers of stablecoin payments, including issuance, wallet infrastructure, and billing.