Mid-September marks Fashion Week in New York City. But in many corners of the city last week, it might as well have been Blockchain Week. That included a warehouse north of Tribeca, where an audience of hundreds gathered to watch Circle executives hype the public launch of the company’s Arc chain. The move marked the company’s most ambitious launch in recent memory, and signified an inflection point not just for Circle, but for the crypto industry, which is suddenly locked in a new blockchain war.
Competition among blockchains is nearly as old as Bitcoin itself, of course, but until recently it consisted of different projects, cooked up by colorful characters, vying to attract speculators and retail users. In this universe, Bitcoin remains the undisputed king, while rival chains like Ethereum, XRP, and Solana have notched multi-billion-dollar market caps, and carved out lanes of their own.
Today, the game is changing. Those familiar blockchains remain significant as ever, but now there is a new group of players on the scene whose chains are custom-built for Wall Street banks and a host of other big institutions. That includes Arc, which rolled out an impressive list of big names that will serve as the chain’s inaugural validators, including Visa, Mastercard and BlackRock.
In designing Arc, Circle wisely went with the EVM-compatible code that has become an industry standard. It also added privacy tools to help corporate customers shield sensitive data, as well as bells and whistles to facilitate the coming age of agentic commerce. Notably, Circle also marked the arrival of its new chain by minting 10 billion ARC tokens. The move could provide a way for Circle to process transactions without using USDC—the popular stablecoin that is effectively half-owned by Coinbase.
All in all, Circle’s Arc strategy looks like a good one. But there’s no guarantee the company’s grand Arc plans will pan out since it’s far from the only one trying to persuade institutions to use its chain. Competitors include the JPMorgan-backed Canton chain, whose ads are plastered all over lower Manhattan, and whose initial partners include Nasdaq, Goldman Sachs, and BNP Paribas.
There is also the Stripe-backed Tempo chain waiting in the wings, which should have no trouble finding users thanks to its fintech patron’s massive network of merchant customers. Then there is legacy blockchain Avalanche, which long occupied a wonky, academic niche but is now positioning itself as a chain for business. To make the point, Avalanche’s new leadership team hosted a two-day summit not far from Circle’s shindig, welcoming a slew of big names from both Wall Street and the crypto scene. Finally, there is Robinhood’s new blockchain, which has been on a memecoin-driven heater, but is also eyeing institutions. Coinbase’s Base chain is running a similar playbook.
How will all this play out? It’s a hard call. I can see Circle’s Arc and Canton leveraging their Wall Street ties to make their chains the financial industry’s go-to ledgers—but it’s equally easy to imagine a scenario where these big players blow all their revenue on marketing and incentives, all while getting dragged down by corporate bureaucracy. This could create an opening for Robinhood, Coinbase, or Avalanche to win the prize by operating more nimbly.
Finally, there’s the issue of decentralization, which is a longtime crypto ideal but serves the practical purpose of creating a blockchain beyond the control of any corporate entity. At a time when different companies are all trying to put their thumb on the scale for their favorite chain, don’t be surprised if Ethereum—a blockchain beholden to no one on Wall Street—has another breakout moment.
The bottom line is the race to become the financial industry’s preferred blockchain is a total jump-ball at the moment. The winners will eventually emerge, but it may take until September of 2027 until we have a good idea of who they are.
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
DECENTRALIZED NEWS
Blockchain Capital led a $13 million seed round into Tare, a startup using blockchain to manage private credit transactions (Fortune)
The ECB Chair thwarted Binance from obtaining a Europe-wide license, leading CZ to say "Sad to see EU cutting their users off from the best liquidity in the world" (WSJ)
After the Clarity Act came up 11 votes short in the Senate, the SEC and CFTC are moving to pass rules that are expected to achieve many of the bill's goals (WSJ)
Hyperliquid's Jake Chervinsky and longtime crypto lawyer Rebecca Rettig explain how the architecture of DeFi is being remade for Wall Street (Fortune)
Bitcoin shook off its Clarity Act hangover to soar well over $80,000, aided by the SEC's innovation exemption for tokenized stocks (Coindesk)
MEME O' THE MOMENT
That time when Bitcoin prince Michael Saylor and his fellow billionaire Jeff Bezos had to sit around for jury duty:
