Stripe and Circle Launch Proprietary L1 Chains
Stripe and Circle announced plans to launch proprietary L1 chains. Ethereum supporters question why these corporations don’t build on L2 networks instead. The answer is simple: vertical integration is profitable. By launching L1 chains, stablecoin issuers secure end-to-end control over transaction fees and user flows, boosting revenue and market position.
Similarly, Phantom wallet chose to integrate Hyperliquid’s perpetuals rather than building on Solana-based DEXs. Hyperliquid processed $371 billion in volume over 30 days, compared with $52 billion for Solana’s top DEXs, Jupiter and Drift. This nearly 7.1× volume advantage underlines a business-driven, multichain strategy.
Major DeFi platforms like Aave also pursue multichain deployments, operating on at least 15 networks. However, some emerging L2s such as Celo, Linea, zkSync, Scroll and Soneium proved unprofitable, prompting developers to halt deployments. As Adam Smith observed, participants act in self-interest, prioritizing profitable infrastructure over ideological chain loyalty.
Neutral
While corporate L1 chain launches signal growing institutional commitment, they don’t directly affect spot prices or DeFi yields. ERC-20 token holders see no immediate benefit since fees shift away from Ethereum. Past similar events, such as major dApps launching proprietary networks, had limited short-term price impact but influenced long-term fragmentation. Traders may adjust allocations toward these new chains over time. Overall, market reaction should remain neutral, with gradual reevaluation as usage data emerges.