Buterin Backs Codex: Ethereum L2 Targets Stablecoin Payments
Ethereum co-founder Vitalik Buterin has endorsed Codex, a new Ethereum L2 focused on stablecoin payments. In an X post, he praised Codex’s design and its built-in synergy with Ethereum L1. The endorsement follows Stripe’s announcement of Tempo, a payments-focused Layer 1 chain that spurred debate over scalability. Experts remain divided on which model will prevail. Fundstrat’s Tom Lee and Christian Catalini of Lightspark warn that corporate-led chains may recreate familiar market structures, risking regulatory choke points. Mert Mumtaz of Helius Labs notes the challenge corporate chains face in transitioning to permissionless networks, underscoring Codex’s advantage as an Ethereum L2. Codex co-founder Haonan Li cautions that many projects are still in the buzzword phase. VC Dragonfly’s Rob Hadick adds that payment innovation is a product game rather than a distribution game. As stablecoin usage expands, competition between Ethereum L2s like Codex and corporate chains such as Tempo could reshape the narrative and infrastructure of digital payments.
Bullish
Vitalik Buterin’s endorsement of Codex signals strong support for Ethereum L2 solutions, enhancing credibility and attracting developer and user interest. Historically, similar endorsements of L2 projects like Arbitrum and Optimism coincided with increased network activity and token demand. By focusing on stablecoin payments, Codex addresses a high-growth segment and leverages Ethereum’s security, likely boosting transaction volumes and fee revenue on L2s. In the short term, traders may anticipate renewed interest and investment in L2 tokens, driving price appreciation. Over the long term, successful implementation of payment-focused L2 could strengthen Ethereum’s scaling narrative and market position, fostering sustained bullish sentiment.