It is rumored that payment giant Stripe will enter L1, which new applications are worth looking forward to?

Stripe has always played the role of a payment gateway or acquirer, but the introduction of Stripe L1 may enable it to simultaneously assume the functions of card networks and issuing banks.

Written by: 100y.eth

Compiled by: Deep Tide TechFlow

Key Points:

There are rumors circulating in the crypto community that Stripe may launch its own Layer 1 blockchain network. Given its recent acquisitions of Bridge and Privy, launching its own blockchain could be a logical next step.

Stripe, as a leading global payment service provider (PSP), connects merchants, acquiring institutions, card networks, and issuing banks on a technical level, ensuring smooth and secure transactions.

If Stripe really launches L1, it is expected to support stablecoin payments as well as the integration of Stripe L1 for customer payments and merchant settlements under basic circumstances; in an optimistic scenario, it could revolutionize the payment system with the following features:

• Achieve direct payments bypassing the card issuing institutions and networks;
• Supports microflow subscription services that cannot be implemented in traditional systems;
• Generate income from the short-term deposit balance on Stripe L1.

Stripe currently operates primarily as a payment gateway and acquirer, but if it launches Stripe L1, it will enable the company to take on roles traditionally handled by issuing banks and card networks, marking a significant milestone in the history of the payment industry.

Will Stripe really launch its own blockchain network?

Recently, there have been rumors in the crypto community that global payment infrastructure company @Stripe may be preparing to launch a Layer 1 blockchain (L1). Another rumor is related to Paradigm's recent secret hiring efforts, which some speculate might be part of Stripe's L1 blockchain plan.

Although no one outside of insiders knows for sure whether Stripe will launch L1, the recent surge of interest from the traditional U.S. financial sector in the blockchain and stablecoin industry, along with the ongoing efforts by card network companies like Visa and Mastercard to increase blockchain integration, and Robinhood's announcement of plans to tokenize stocks through Arbitrum, have rapidly drawn the community's attention to the rumors surrounding Stripe's potential L1 launch.

Stripe's mission is to "accelerate the GDP of the internet." The company focuses on building the global economic infrastructure to help businesses of all sizes, from startups to large enterprises, manage payments, operations, and growth online. From this perspective, blockchain technology is highly attractive to Stripe.

In fact, Stripe has been actively expanding its blockchain-related business in recent years. In February 2025, Stripe acquired the stablecoin infrastructure company Bridge (@Stablecoin) for approximately $1.1 billion, strategically consolidating its position in the stablecoin-based financial infrastructure. Building on this, Stripe launched its Stablecoin Financial Accounts service at the Stripe Sessions event in May 2025.

Stripe's stablecoin financial account service is now available in 101 countries worldwide, providing businesses with the following features:

• Hold USDC issued by Circle and USDB issued by Bridge;
• Transfers of US dollars via ACH/wire transfer and euro transfers via SEPA to facilitate the deposit and withdrawal of stablecoins;
• Supports accessing USDC across multiple blockchain networks, including Arbitrum, Avalanche C-Chain, Base, Ethereum, Optimism, Polygon, Solana, and Stellar.

This means that businesses in 101 countries can easily access USD-based stablecoins through Stripe, seamlessly integrating with the traditional banking system to enable convenient USD deposits, withdrawals, and payment functionalities.

In addition, in June 2025, Stripe acquired the Web3 wallet infrastructure startup @privy_io. The company offers several features, including wallet creation via email or single sign-on (SSO), transaction signing, key management, and gas abstraction services.

With these actions combined, the rumors that Stripe may launch a Layer 1 blockchain do not seem to be baseless. In other words, Stripe currently has the infrastructure for stablecoins and wallets, and launching a blockchain network that can synergize with these resources may be the natural next step in its blockchain business expansion.

What possibilities would arise if Stripe launched a Layer 1 blockchain?

Of course, there is currently no concrete evidence that Stripe will launch an L1; this is merely a rumor. However, we can boldly speculate on how Stripe might use its own L1 if it really does launch one, and what services it could offer that traditional payment systems cannot. The ideas listed below are entirely my personal conjectures, and you can take them lightly, just as a thought exercise of 'Oh, so blockchain can be used in payment services this way too.'

2.1 The role of Stripe as a Payment Service Provider (PSP)

To understand how blockchain can improve certain aspects, we first need to understand the types of services offered by Stripe. As one of the most well-known payment service providers (PSP) in the world, Stripe acts as a technological bridge between merchants, acquirers, card networks, and issuing banks, ensuring that the payment process is smooth and secure. Specifically, Stripe takes on the following roles:

• Payment Gateway: When customers pay online or offline using a credit card, Stripe securely collects card information, encrypts it, and transmits it to the card network and issuing bank.
• Multiple payment methods supported: Integrates various payment options, including credit cards, digital wallets, bank transfers, and local payment methods, providing convenience for customers and merchants.
• Fraud Detection and Security Assurance: Prevent fraudulent transactions through a machine learning-based fraud detection system and security measures that comply with PCI-DSS standards.
• Multi-currency and international payment support: Provides automatic currency conversion services, supports multi-currency transactions, and facilitates international sales.
• Reports and Analysis: Provide merchants with detailed transaction history, success rates, and customer behavior analysis to help optimize business operations.
• Technical Integration and Operational Support: Helping businesses easily build payment systems through API and SDK, while handling customer support, regulatory compliance, refunds, and billing management.
• Enhance customer experience: Provide a fast and smooth payment process, while supporting various scenarios such as subscription billing, installment payments, and refunds.

Merchant Settlement Intermediary: PSP collaborates with acquiring institutions or acts directly as an acquiring institution to settle the funds received from the issuing bank to the merchant.

Without the existence of a PSP, merchants would have to support various payment methods on their own and sign complex contracts directly with acquiring institutions. This would not only increase the technical and operational burden on merchants but also significantly reduce the payment experience for both merchants and customers.

What changes will 2.2 Stripe L1 bring?

If Stripe were to launch a Layer 1 blockchain (L1), how might it optimize existing services and create new functionalities? Here are some possibilities:

2.2.1 Basic Scenarios

Integration of merchant stablecoin financial accounts with Stripe L1

Currently, Stripe provides stablecoin financial account services for merchants in 101 countries, allowing them to hold USDC and USDB stablecoins, and access them through traditional banking systems (such as ACH, SEPA) as well as multiple blockchain networks.

If Stripe L1 goes live, it is expected that the stablecoin financial account services will also support deposits and withdrawals via Stripe L1. In addition, merchants can also use their stablecoin balance on Stripe L1 to participate in various financial activities.

Merchant's stablecoin settlement options

As a payment service provider (PSP), Stripe typically works with acquirers or acts directly as an acquirer to settle merchants' sales revenue. If Stripe L1 goes live, merchants may be able to choose to settle in USD-based stablecoins. This would be a significant advantage for merchants who have high demand for USD but limited access channels.

Customer Wallet Service

Stripe previously acquired Privy, a company that provides wallet infrastructure, enabling users to easily create and use wallets. While Stripe primarily serves merchants and businesses, it has yet to offer wallet services for individual users. However, if Stripe L1 leverages Privy's technology, it may support individual users in easily creating Web3 wallets on Stripe L1, making payments with stablecoins, and participating in various financial activities within the Stripe L1 ecosystem.

Customer stablecoin payment options

Currently, customers can only use bank cards, bank accounts, and other traditional payment methods for online payments through Stripe. If Stripe L1 goes live, it may allow users to connect Web3 wallets (possibly provided by Stripe or third parties) and choose stablecoins as a payment method.

2.2.2 Bull Market Case

Direct payment between customers and merchants

Traditional payment systems (such as credit cards or bank accounts) rely on traditional financial networks, such as card networks and banks. However, if Stripe L1 allows customers to pay merchants directly with stablecoins, it could eliminate the involvement of issuing banks and card networks, significantly enhancing settlement speed and reducing costs. Of course, since payment settlements on the blockchain are difficult to reverse or refund, appropriate safeguards need to be put in place to ensure transaction security.

Subscription service based on micropayments

Blockchain can support micropayments and streaming subscription models that traditional systems cannot achieve. Currently, most subscriptions through Stripe are based on monthly or yearly renewals, while Stripe L1 has the potential to implement minute-based subscription services. Users will pay fees based on actual usage, and all payments can be automatically executed through smart contracts. This new subscription model will provide development opportunities for various services built on this system.

DeFi application of short-term deposits

One reason for the settlement delay in the current payment system is to prepare for issues such as fraud, cancellations, or refunds. Therefore, even if Stripe L1 allows customers to pay merchants directly with stablecoins, these funds may be temporarily held in Stripe L1 instead of being released to the merchant immediately.

The scale of these short-term deposits is expected to be very large, potentially becoming a massive liquidity pool for Stripe L1. For example, these funds could be supplied as liquidity to DeFi protocols for lending markets, or invested in bonds to earn interest, thereby significantly improving capital efficiency.

Summary Thoughts

After conducting long-term research on stablecoins and observing the development of the industry and ecosystem, the rumors about Stripe's L1 are indeed intriguing. So far, payment companies like Visa, Mastercard, and PayPal have only viewed blockchain and stablecoins as additional features. If Stripe really launches its own Layer 1 blockchain (L1), it could mark a historic moment in the field of payment systems, signaling the beginning of a paradigm shift.

Stripe has always played the role of a payment gateway or acquirer, but the introduction of Stripe L1 may allow it to simultaneously take on the functions of card networks and issuing banks. Additionally, leveraging blockchain technology can significantly enhance payment efficiency and enable functionalities that were previously unattainable, such as automated management of micro-flow payment subscription services and short-term deposits.

We are currently in an era of innovation in payment systems driven by blockchain. Whether Stripe will truly launch L1 as rumored remains to be seen.