Analysis of the Impact of Tempo and Circle Arc L1 Blockchains on the Ethereum and Solana Ecosystems

Stripe and Circle are building EVM-compatible L1 blockchains, aiming at payments, stablecoins, and enterprise use.

Enterprise L1s may erode Ethereum’s stablecoin dominance and weaken Solana’s unified-chain narrative.

Adoption, not announcements, will determine the long-term impact on blockchain competition.

In 2025, enterprise players are accelerating their move into blockchain infrastructure. Recently, payments giant Stripe launched the “Tempo” project, and stablecoin issuer Circle announced the “Arc” blockchain. Both plan to build EVM-compatible L1 chains. These moves show deeper entry by traditional fintech into blockchain and spark debate about potential competition and narrative shifts for existing chains such as Ethereum and Solana.

PROJECT OVERVIEW: CORE FEATURES OF STRIPE TEMPO AND CIRCLE ARC

Stripe Tempo: the blockchain ambition of a payments giant

Stripe, valued at $92 billion, is building an L1 called Tempo. This marks a shift from crypto payment tools to base infrastructure. Tempo is co-developed with Paradigm. Former Paradigm co-founder Matt Huang serves as CEO. The goal is a high-performance, payments-first chain focused on faster stablecoin settlement and enterprise use.

Core traits and tech stack:

EVM compatibility: Tempo adopts the Ethereum Virtual Machine. Developers can move existing Ethereum apps. It supports Solidity. This helps interoperability but does not depend on Ethereum mainnet.

Payment optimization: Tempo targets sub-second finality, low fees, and deep stablecoin integration. It will connect to Stripe’s payment rails. It is designed for cross-border payments and real-time settlement. It may minimize gas dependence.

Performance and scale: Tempo aims for high throughput. It may use parallel execution or an optimized consensus. It suits high-frequency payments. The exact consensus is not public.

Ecosystem integration: Stripe bought Bridge (Aug 2025) and wallet startup Privy (Jun 2025). These assets can give Tempo plug-and-play tools for stablecoin issuance and user onboarding.

Progress and timeline: Tempo is in stealth. There is no mainnet date yet. Reports in Aug 2025 say interest is strong, but no public testnet. Stripe’s move follows its growth in crypto payments, including USDC and USDT transfers. Some say this helps the EVM world. Others worry about market fragmentation. If Tempo succeeds, enterprises may prefer self-owned rails over third-party chains like Solana or Ethereum L2s.

Circle Arc: the dedicated chain from the stablecoin leader

Circle, issuer of USDC, is launching Arc—an open L1 for stablecoin finance. This is a move from stablecoin provider to full-stack infrastructure. It leverages USDC’s large supply (reaching $65.2B in Q2 2025) to build an enterprise-grade payment network.

Core traits and tech stack:

Native USDC integration: Arc uses USDC as the native gas token. Fees are paid in USDC. This avoids ETH gas volatility and enables instant, low-cost cross-border payments. It also helps FX and capital-markets use cases.

EVM-compatible with enterprise focus: Arc supports EVM and easy dApp migration. It stresses compliance, security, and privacy options (e.g., zero-knowledge proofs). It aims for sub-second finality.

Feature expansion: Beyond payments, Arc plans perps for FX, on-chain FX engines, and privacy tools. It positions itself as infrastructure for stablecoin finance.

Performance targets: It aims at enterprise-level throughput. Circle’s Q2 revenue grew 53%, giving room to build Arc.

Progress and timeline: Arc was announced on Aug 12, 2025. A litepaper is live. A private testnet is coming soon. Public testnet is planned for fall 2025. Mainnet is planned for 2026. Arc puts USDC at the core of a new chain. It could chip away at Ethereum’s stablecoin lead but also risks fragmentation. If it works, it offers a “digital-dollar” rail for global payments.

CORE JUDGMENT: ENTERPRISE L1S ARE A TREND AND COMPETE WITH EXISTING CHAINS

Enterprise L1s are rising. This is not a one-off. It is the next step of fintech going on-chain. Tempo and Arc show large firms prefer control of their base layer instead of renting a third-party chain. This may split users and liquidity and weaken network effects. For Solana, if enterprises build their own chains rather than deploy on Solana, it challenges Solana’s “one unified high-performance computer” story.

IMPACT ON ETHEREUM (ETH / ETHEREUM ECOSYSTEM): EVM COMPATIBILITY IS NOT A DIRECT POSITIVE

Ethereum created the EVM. At first glance, it seems to benefit when new L1s adopt EVM. In practice, it is not so simple. EVM-based ≠ direct value to ETH. EVM is software. It does not guarantee value accrual to ETH. Tempo and Arc use EVM, but they focus on payments and stablecoins, not on ETH’s native economics.

Gas and value capture diverge. Circle plans to use USDC for gas. Arc transactions will not pay ETH gas. Tempo may also minimize ETH gas and rely on its own rails. This weakens ETH’s value capture via gas, especially as L2s already move fees off L1.

Ethereum’s role as the “home of stablecoins” also faces pressure. If USDC activity shifts to Arc, stablecoin liquidity may leave Ethereum. Even the ETH upside from some L2s needs “squinting.” Independent EVM L1s are even less likely to be clear ETH positives. Enterprise EVM L1s may erode Ethereum’s moat rather than reinforce it.

IMPACT ON SOLANA: NEGATIVE SIGNALS AND A WEAKER NARRATIVE

For Solana, the effect is more direct. If Tempo and Arc succeed, they show big firms prefer self-owned L1s over building on Solana. In this “fintech on-chain” round, Solana is 0/2. Stripe and Circle did not pick Solana. They chose EVM-compatible, self-run chains. This challenges Solana’s “shared state is necessary” claim. If enterprises can meet payment goals with their own L1s, why rely on Solana’s single-chain model?

Some argue enterprise L1s are not only a pushback against the L2 thesis; they also reject Solana’s core vision. Solana focuses on a single high-performance chain. The enterprise trend points to a practical multi-chain world. This puts Solana on the back foot in enterprise adoption. In 2025, reports show strong developer growth on Solana (over 7,600 new developers), but this has not yet turned into enterprise wins.

CONCLUSION AND UNCERTAINTY: RECENT MOVES MUST BE VERIFIED; ADOPTION WILL DECIDE

Recent moves do not support Solana’s thesis. Real deployments are not friendly to its core story. But announcements are not success. Big companies can build chains and still miss product-market fit. Sony’s Soneium is a warning. Tempo and Arc may squeeze Ethereum’s stablecoin moat and ETH’s value capture. They also support a world of “multi-chain or self-owned L1s,” or “L2-first.”

In the end, adoption and network effects will decide. As Arc testing advances and Tempo develops, these L1s could attract enterprise flows and reshape competition. Or Solana may keep its speed and fee edge. Or Ethereum may harden its lead with new upgrades. Watch delivery and real usage. That is how we will read the future of blockchain.

〈Analysis of the Impact of Tempo and Circle Arc L1 Blockchains on the Ethereum and Solana Ecosystems〉這篇文章最早發佈於《CoinRank》。