Why Fintech Giants Are Ditching Ethereum L2s for Their Own Chains

Many fintech companies, such as Tether, Stripe, and, more recently, Circle, have launched their own Layer-1 (L1) blockchains. Amid this wave, the question arises: why are these companies launching their L1s instead of opting for Layer-2 (L2) solutions? Have L2 blockchains already become irrelevant? The trend toward L1 adoption Recently, Circle — the issuer of the USDC stablecoin — unexpectedly announced Arc, an open-source L1 blockchain. Before that, both Tether and Stripe had launched their own L1s. This move has prompted analysts to question the infrastructure development strategies of traditional financial institutions entering the crypto space source: https://beincrypto.com/fintech-giants-turn-to-l1s/