Will Stripe enter L1? Understanding the blockchain ambitions behind the payment giant

Original article: 100y.eth

Compiled by: Yuliya, PANews

Recently, there have been rumors in the crypto community that Stripe intends to launch its own L1 blockchain network. After acquiring Bridge and Privy, launching a dedicated chain may be the next step in its layout in the blockchain field. As a leading global payment service provider (PSP), Stripe serves as a technical bridge between merchants, acquiring institutions, card networks and issuing banks to ensure efficient and secure transactions.

If the L1 mainnet is really launched, it may support stablecoin payments, deep integration of Stripe L1 with customer payments and merchant settlements in the basic scenario; in the ideal scenario, it may completely reshape the payment system, including:

1) Bypassing direct payment between card organizations and banks;

2) Micropayment subscription model that cannot be achieved by traditional systems;

3) Generate income by holding short-term deposit balances on Stripe L1.

Currently, Stripe mainly operates as a payment gateway and acquiring institution. If it launches its own L1 network, it will be expected to replace some roles of traditional issuing banks and card organizations, which may become a historic turning point for the payment industry.

Will Stripe really launch the L1 mainnet?

Rumors that Stripe will launch an L1 blockchain have been raised by multiple crypto observers. Although there has been no official confirmation, multiple sources (including face-to-face and private messaging) have mentioned this. Similar to Robinhood's launch of Arbitrum-based stock tokenization, Stripe may be the next large fintech company to enter the market.

Stripe's mission is to "increase the GDP of the Internet" and focus on building global economic infrastructure to help startups and large companies manage online payments, operations and growth. Based on this vision, blockchain is undoubtedly a highly attractive technology.

In February 2025, Stripe acquired the stablecoin infrastructure company Bridge for approximately US$1.1 billion, further strengthening its strategic position in the field of stablecoin financial infrastructure. Subsequently, at the Stripe Sessions conference in May, the "Stablecoin Financial Account" service was officially launched.

The service is now available in 101 countries and allows businesses to:

• Hold USDC issued by Circle and USDB issued by Bridge;
• Deposit and withdraw stablecoins via ACH/Wire transfers for USD and SEPA transfers for EUR;
• Deposit and withdraw USDC on-chain through Arbitrum, Avalanche C-Chain, Base, Ethereum, Optimism, Polygon, Solana, and Stellar.

This means that businesses can easily access dollar-based stablecoins on the Stripe platform and achieve efficient fiat currency deposit and withdrawal operations through seamless integration of the traditional banking system.

In addition, Stripe acquired Privy, a Web3 wallet infrastructure startup, in June 2025. The company provides functions such as creating wallets based on email or SSO login, transaction signing, key management, and Gas abstraction. Combining the existing stablecoin infrastructure and wallet technology, it seems to be a natural thing to launch its own blockchain mainnet to achieve system collaborative development.

What changes will Stripe bring if it launches the L1 mainnet?

Although Stripe's launch of the L1 mainnet is still a rumor, if it comes true, it may enable a series of financial services that were previously unavailable. The following are some of the envisioned directions based on existing businesses and potential expansions.

Stripe’s existing capabilities as a PSP

To understand what services Stripe can improve through blockchain, you need to first understand the role it currently plays. As one of the most well-known payment service providers, Stripe plays the role of a technical bridge between merchants, acquiring institutions, card organizations and issuing banks to ensure smooth and secure payment processes. Its main services include:

• Payment gateway: collects user card information, encrypts it and transmits it to the card network and issuing bank;
• Support multiple payment methods: support credit cards, digital wallets, bank transfers and local payment methods;
• Fraud detection and security: Detect fraudulent transactions through machine learning and comply with security regulations such as PCI-DSS;
• Multi-currency and international payment support: automatic conversion of multiple currencies to facilitate global sales;
• Reporting and analysis tools: provide merchants with insights into transaction records, success rates, user behavior, etc.;
• Technical integration and operational support: Providing APIs and SDKs to help companies deploy payment systems and handle refunds, billing, customer support, and other matters;
• Customer experience optimization: support payment scenarios such as subscription, installment payment, and refund;
• Merchant Settlement Intermediary: Works with acquirers or handles it on its own to settle funds from the card issuer to the merchant.

Before the birth of PSP, merchants had to integrate multiple payment methods on their own and sign contracts with acquirers one by one, which greatly affected operations and user experience.

The changes that Stripe L1 may bring

If Stripe launches the L1 blockchain network, it may bring about the following changes:

Basic scenario

1. Merchant stablecoin account integration with Stripe L1

Stripe currently provides stablecoin account services in 101 countries, allowing merchants to hold USDC and USDB and deposit and withdraw through traditional banking systems or on-chain networks. If Stripe L1 is launched, it is expected to further support deposits and withdrawals through its own chain, improve operational efficiency, and expand application scenarios.

2. Stablecoin settlement options

As a payment service provider, Stripe often cooperates with acquirers or assumes settlement functions on its own. If Stripe L1 is introduced, merchants may choose to settle sales revenue in US dollar stablecoins, which is particularly significant for merchants with high demand for US dollars but limited access to them.

3. User wallet service

Stripe already has the infrastructure to create wallets for users through the acquisition of Privy. Although the current focus is on the merchant side, if Stripe L1 and Privy services are combined, it is possible to provide individual users with simple and easy-to-use wallets that support payments and other Web3 financial activities.

4. Customer stablecoin payment options

Currently, Stripe mainly supports traditional payment methods such as credit cards and bank accounts. If Web3 wallets (provided by Stripe or a third party) are supported, customers will be able to choose to use stablecoins to complete payments.

Ideal scenario

1. Direct payment between customers and merchants

Payments made through credit cards or bank accounts rely on traditional financial networks. If Stripe L1 supports users to pay stablecoins directly to merchants, it will be expected to bypass issuing banks and card organizations, significantly increase settlement speed and reduce costs. However, it should be noted that the on-chain payment cancellation or refund mechanism is relatively complex, and a comprehensive protection mechanism needs to be introduced.

2. Subscription services based on micropayments

Blockchain has micropayment and streaming subscription capabilities. Currently, subscriptions are mostly billed on a monthly or annual basis. Stripe L1 can support a per-minute billing model, realize automatic settlement based on real usage time, and bring a new business model to service providers and consumers.

3. DeFi use of short-term deposits

The current payment system has a long settlement cycle, partly because it needs to deal with fraud, cancellations and refunds. Even if customers are allowed to pay stablecoins directly to merchants, some funds may still need to stay in Stripe L1 for a short time.

These short-term deposits will constitute a huge liquidity pool that can be used in DeFi protocols, lending markets, or bond investments, thereby improving capital efficiency and generating additional returns.

Final Thoughts

After paying attention to the stablecoin industry and observing the related ecology for a long time, it is not difficult to find that the rumors about Stripe launching the L1 mainnet are indeed quite interesting. So far, payment giants such as Visa, Mastercard and PayPal have only used blockchain and stablecoins as additional functions of traditional businesses. If Stripe really releases its own L1 mainnet, it may be an important beginning of a paradigm shift in the payment system.

In the past, Stripe's main role was payment gateway or acquirer, but once the L1 blockchain is built, it may assume the functions of both the card issuer and the card organization at the technical level. More importantly, Stripe L1 may use blockchain technology to comprehensively improve payment efficiency and expand new functions that are difficult to reach with traditional systems, such as streaming subscriptions based on micropayments and automated management of short-term deposited funds.

At present, the payment system is on the verge of a wave of innovation driven by blockchain. Regardless of whether the rumors are true or not, any blockchain-related actions of Stripe may have a profound impact on the payment industry landscape. Whether we will usher in an era where blockchain reshapes the payment infrastructure remains to be seen.