Experts in crypto and blockchain indicate that recent developments highlight a growing rivalry between these two established financial entities in the domain of digital payment infrastructure.
By Olivier Acuna|Edited by Cheyenne Ligon Jul 17, 2026, 5:23 p.m. 4 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Experts suggest that traditional financial institutions are vying to dominate blockchain payment systems. (RWA Summit)SummaryShow- Swift is broadening its blockchain settlement network, collaborating with over 40 financial organizations, demonstrating how traditional players are striving to establish the infrastructure for tokenized payments.
- Stripe's unsolicited offer of $53 billion for PayPal aims to connect a vast merchant network with a significant consumer wallet, reducing dependency on traditional intermediaries like Visa and Mastercard.
- Industry leaders assert that the focus has shifted from validating blockchain technology to controlling distribution, as stablecoins become integral to payment frameworks, and companies aim to dominate wallets, merchant acceptance, and settlement processes.
This week, two major payment networks have made significant strides in blockchain technology, emphasizing an escalating competition for dominance in the infrastructure underpinning tokenized payments.
Swift announced on Tuesday its plans to expand its blockchain-based settlement network after successfully completing pilot projects with 17 global banks, and is now collaborating with over 40 financial institutions. Following closely, Stripe launched an unsolicited $53 billion bid for PayPal, a move that would merge one of the largest merchant payment networks with one of the most prominent consumer wallet platforms. PayPal’s board, as reported by Reuters, views the acquisition offer as undervaluing the company and anticipates regulatory and financing hurdles ahead.
Swift, Stripe, and PayPal occupy distinct positions within the global payments landscape. Swift connects over 11,500 financial institutions and manages messaging for trillions in cross-border transactions. Stripe processes hundreds of billions annually for millions of businesses, while PayPal boasts over 439 million active accounts, processing $1.79 trillion in 2025.
The recent activities of Swift and Stripe reflect a broader trend wherein banks, financial technology companies, and payment service providers increasingly compete to construct the infrastructure necessary for the next wave of digital payments, whether through blockchain settlement systems, stablecoins, or consumer payment platforms.
Ilies Larbi, founder and CEO of Ouinex, remarked, "It’s a race to control the next generation of global payment infrastructure."
The potential merger of Stripe and PayPal would facilitate more transactions across its own network, thereby minimizing reliance on intermediaries such as Visa and Mastercard, while also gaining access to PayPal’s extensive consumer base. Additionally, PayPal possesses a Paxos-based USD stablecoin, which acts as a stable bridge between traditional finance and digital assets.
Jason Li, co-founder of Solayer and CEO of MPCVault, emphasized that Stripe’s interest in acquiring PayPal signals that the focus now lies in reaching consumers rather than merely launching another stablecoin. "Getting 400 million people to actually use a stablecoin is what costs $53 billion," Li stated. "Stripe already has the issuer, the chain, and the merchant side. What it's purchasing is the consumer wallet."
Rob Hadick, a general partner at Dragonfly, shared that Stripe’s proposed acquisition of PayPal also has financial merit beyond just stablecoins. "Both Stripe and PayPal handle roughly the same transaction volumes, yet Stripe generates about one-fifth of the net revenue," Hadick explained. "From a financial standpoint, this is clearly beneficial, connecting their merchant processing business—which is facing commoditization risks—with a broad segment of PayPal's over 400 million accounts." He also warned that executing a deal of this magnitude poses significant challenges. "M&A integration on such a scale is incredibly complex," he cautioned.
Expanding Beyond Merchant Payments
Eric Queathem, CEO of Velocity, noted that the acquisition would provide Stripe access to one of the largest consumer payment ecosystems globally, enabling it to extend its reach beyond just merchant payments.
This acquisition could also dictate who governs the consumer aspect of blockchain payment infrastructure, enhancing Stripe's existing merchant network and stablecoin functionalities.
Several industry leaders remarked that the competitive emphasis has transitioned from merely demonstrating blockchain technology's viability to controlling distribution channels.
Pankaj Bengani, founder and CEO of Meld, echoed Larbi's sentiments, stating, "The race has shifted from proving the technology works to owning distribution," and added that "stablecoins have matured from experiments to core payment infrastructures."
Citi analysts have reached a similar conclusion in a recent research note, observing that competition among stablecoins has become a "default-setting game," where the scale benefits whichever stablecoin becomes the go-to option for the largest merchant, consumer wallet, or autonomous transaction base, rather than favoring the issuer with superior technology.
Steven Rossi, CEO of Nasdaq-listed Worksport (WKSP), remarked that the proposal focuses less on acquiring a legacy payments company and more on enhancing Stripe's payment ecosystem. "The broader goal is to gain control over the transaction lifecycle," Rossi stated. "Stripe would have increased influence over consumer payment methods, merchant fund reception, and the operational settlement rails in the background."
Larbi believes the stakes extend beyond just payments, stating, "The real prize isn’t just payments; it's about controlling wallets, merchant acceptance, reserve economics, and cross-border settlements."
Benjamin Sarquis Peillard, founder and CEO of Cap, noted this trend is also prompting more fintech firms to create their own stablecoins. "We will continue to see more companies issuing their own stablecoins, and more fintech players transitioning their backends to blockchain for lower costs and enhanced efficiency," Sarquis Peillard remarked. "So far, the evidence is clear: these companies are opting not to adopt existing stablecoins like USDC, but are instead launching their own."
Evolution of Stablecoins
Chris Maurice, CEO of Yellow Card, commented that these developments indicate that traditional financial firms are increasingly prioritizing blockchain infrastructure as a strategic asset rather than viewing it as a niche segment of the crypto market. "Entities with substantial capital don’t simply observe a potential threat without engaging and leveraging the opportunities presented by the technology," Maurice stated.
Even though there's a growing belief within the industry that stablecoins represent the future of payments, most transactions continue to occur within traditional banking frameworks. The adoption of stablecoins outside of trading and select cross-border transactions remains relatively limited, with regulators worldwide still formulating guidelines for digital asset payments.
"Stablecoins are transitioning from a crypto-centric product to the settlement layer of mainstream finance, with distribution now emerging as the key battleground," said Larbi.
StripeStablecoinsbanksDeFiLatest Crypto News- 1Cardano hands core development to outside teams in decentralization push1 hour ago
- 2Inside Robinhood’s high-stakes bet to onboard 10 million casual users onto decentralized finance2 hours ago
- 3Japan's SBI Group is building Asia's first cross-border digital asset empire4 hours ago
- 4Bitcoin faces fresh headwinds as China’s Kimi beats Claude, GPT in coding benchmark5 hours ago
- 5AI frenzy losing steam leaves bitcoin less volatile than South Korean stocks6 hours ago
- 6Live markets: Bitcoin returns to $63,000 as Nasdaq trims large early loss7 hours ago
- 7Risk-off wave drags bitcoin below $63,000 as AI selloff spreads from stocks to crypto7 hours ago
- 8Airbnb CEO says X account was hacked, attacker posted AI-slop on tokenization9 hours ago
- 9Ether falls twice as hard as bitcoin and HYPE drops 10% as the chip trade unwinds10 hours ago
- 10This $28 million ether market bet aims to profit from pure market chaos10 hours ago
Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
By CoinDesk ResearchJul 13, 2026CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
View Full ReportMore From Finance