Encryption payment giant may launch its own Blockchain network

Recently, the encryption community is abuzz with discussions about a leading global payment service provider potentially launching its own L1 Blockchain network. This company plays a technical bridging role between merchants, acquirers, card networks, and issuing banks, ensuring that transactions are efficient and secure. If the news is true, this would be an important step for the company in the blockchain space.

If the company really launches the L1 mainnet, it may support stablecoin payments and deep integration of customer payments and merchant settlements under basic scenarios; in an ideal scenario, it is expected to completely reshape the payment system, including:

1. Bypass traditional financial institutions to achieve direct payments;

2. Implement micro-payment subscription models that are difficult to support in traditional systems;

3. Generate additional income through short-term deposit balances.

Currently, the company mainly operates as a payment gateway and acquiring institution. If it launches its own L1 network, it will have the opportunity to take on some functions of traditional issuing banks and card organizations, which could become a historic turning point in the payment industry.

Credibility Analysis of Rumors

Although there has not yet been an official confirmation, multiple sources have mentioned this possibility. Given the company's previous layout in the Blockchain field, launching its own mainnet seems to be the logical next step.

The company's mission is to "enhance the Internet GDP", dedicated to building a global economic infrastructure that helps various enterprises manage online payments, operations, and growth. From this vision, Blockchain technology undoubtedly has a high level of appeal.

In February of this year, the company acquired a stablecoin infrastructure company for approximately $1.1 billion, strengthening its strategic position in the stablecoin financial infrastructure sector. Subsequently, at the company's conference in May, it officially launched the "Stablecoin Financial Account" service.

This service has been launched in 101 countries, and businesses can:

• Hold multiple stablecoins;
• Deposit and withdraw stablecoins through traditional bank channels for USD and EUR transfers.
• On-chain deposit and withdrawal of stablecoins through multiple mainstream Blockchain networks.

In addition, the company acquired a Web3 wallet infrastructure startup in June this year, gaining technical capabilities including wallet creation based on email or SSO login, transaction signing, key management, and Gas abstraction.

Combining the existing stablecoin infrastructure with wallet technology, launching a proprietary Blockchain mainnet to achieve the synergistic development of the system seems to be a natural progression.

Potential Transformations and Impacts

If the company really launches the L1 mainnet, it may bring about the following changes:

Basic Scenario

1. The merchant's stablecoin account is deeply integrated with the new L1 Blockchain, improving operational efficiency and expanding application scenarios.

2. Provide stablecoin settlement options, which is particularly beneficial for merchants with high demand for USD but limited access.

3. May provide a simple and easy-to-use wallet for individual users, supporting payments and other Web3 financial activities.

4. Provide customers with the option to make payments using stablecoins.

Ideal Scenario

1. Achieve direct payments between customers and merchants, bypassing traditional financial institutions, enhancing settlement speed and reducing costs.

2. Support subscription services based on micropayments, such as streaming subscription models billed by the minute.

3. Utilize short-term deposits to participate in DeFi activities, enhance capital efficiency, and generate additional returns.

Industry Impact

If the company truly launches its own L1 mainnet, it could mark an important beginning for the paradigm shift in payment systems. This not only means taking on the functions of both issuing banks and card organizations at the technical level, but more importantly, it is expected to leverage Blockchain technology to comprehensively enhance payment efficiency and explore new functions that are difficult to achieve with traditional systems.

Regardless of whether the rumors are true, any moves made by the company in the Blockchain field could have a profound impact on the landscape of the payment industry. We may be standing on the eve of a wave of payment innovations driven by Blockchain, and a new era reshaping payment infrastructure by Blockchain may be on the horizon.