Fintech Firms Build Proprietary Blockchains for Faster, Compliant Digital Payments

Circle and Stripe, along with a growing number of fintech and digital asset firms, are increasingly developing proprietary blockchain networks to serve as internal settlement layers. The primary objective of these initiatives is to enhance the efficiency, compliance, and revenue potential of digital asset-based payments [1]. By building their own blockchain infrastructure, these companies aim to reduce reliance on public blockchains like Ethereum and Tron, which are currently used for stablecoin settlements but come with risks such as unpredictable fees, governance dependencies, and technical bottlenecks [1].

The move aligns with a broader industry trend where firms seek greater control over their ecosystems. Custom blockchains allow companies to embed compliance mechanisms directly into the settlement process, integrate foreign exchange engines, and ensure predictable transaction fees. Martin Burgherr, Sygnum’s Chief Client Officer, emphasized that the economics of stablecoins are fundamentally shaped by settlement speed, interoperability, and regulatory coordination, making a foundational layer a strategic asset [1].

Startups like Plasma and Stable are also entering the space, raising funds to develop dedicated blockchains for USDT, while projects such as Securitize and Ethena are collaborating on solutions like Converge. Ondo Finance and Dinari have similarly announced plans to deploy native or layer-1 networks, often leveraging existing platforms like Avalanche to facilitate tokenized asset settlements [1].

Beyond efficiency and compliance, proprietary blockchain development is viewed as a defensive strategy. By minimizing reliance on third-party networks, firms can mitigate risks associated with external fee markets and governance decisions. This is particularly important in a rapidly evolving regulatory environment where firms must ensure they can adapt quickly to changing compliance requirements [1].

The trend also opens new revenue opportunities. By offering custodial services and on-chain asset management, companies can generate additional income while improving the operational efficiency of cross-border transactions. As digital competition regulations (DCRs) begin to reshape market dynamics, firms with proprietary infrastructure may find themselves better positioned to comply with and influence future rules [2].

While the trend is still in its early stages, the benefits—such as reduced costs, greater data control, and enhanced compliance—are becoming more apparent for adopters. As the digital asset landscape matures, proprietary blockchain infrastructure could become a key differentiator for firms aiming to lead in the next phase of digital payments [1].

Source:

[1] https://www.facebook.com/groups/144****386265744/posts/4070661983201158/

[2] https://laweconcenter.org/spotlights/digital-competition-regulations-around-the-world/