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Financial firms from Stripe to Circle are building their own blockchain—here’s why

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Building blockchains is the newest fad in fintech. The U.S. crypto exchange Coinbase has one. The online brokerage Robinhood announced its plans to launch its own blockchain in June, and its competitor eToro is considering its own. And, now, the fintech giant Stripe and the stablecoin issuer Circle are getting in on the action.

Stripe is developing what it calls Tempo, a payments-focused blockchain, according to a since-deleted job posting and sources familiar with the matter. And Circle said Tuesday morning that it’s building what it calls Arc, a blockchain designed for stablecoins, or cryptocurrencies pegged to underlying assets like the U.S. dollar.

There’s suddenly a flood of corporate chains, which begs the question: Why is seemingly every big finance company—especially Stripe and Circle—becoming a blockchain developer?

‘Own the full stack’

The answer for Stripe is simple, according to two stablecoin executives and one investor: vertical integration. 

Through its $1.1 billion acquisition of the stablecoin startup Bridge, Stripe bought its own stablecoin and payments network. And after its June acquisition of the crypto wallet company Privy, it can give users accounts to store stablecoins. For, Stripe—which has made its name off of more traditional payments offerings like online checkout—adding a blockchain would amount to the creation a full-blown stablecoin ecosystem

“There’s an incentive for these large companies to own the full stack,” Rob Hadick, general partner at the crypto venture firm Dragonfly who regularly invests in stablecoin startups, told Fortune.

Stripe is making a big bet that stablecoins may be the future of payments. If much of its $1.4 trillion volume passes through stablecoins, it’s missing out on potentially millions in revenue

Blockchains, or decentralized networks like Ethereum or Solana, are akin to the Google Clouds or AWSs of the crypto tech stack. A decentralized fleet of servers process many of the transactions on a crypto app, and in return for lending their computing power, the owners of these servers receive fees.

Coinbase’s own blockchain Base, for example, has generated more than $130 million in fees since it launched in early 2023, according to data from DefiLlama

“You want to control the economics,” Luca Prosperi, the cofounder and CEO of the stablecoin infrastructure company M0, told Fortune.

It remains to be seen, however, whether the multiplication of stablecoins and associated blockchains would result in countless coins and chains that normal consumers would have trouble navigating.

Stripe didn’t respond to a request for comment.

Defense vs. offense

For Circle, it’s a similar set of motivations. 

The stablecoin issuer, which had a red-hot IPO in June, has its own token, USDC. The company also has its own burgeoning payments network. And it even has a service to let enterprise customers spin up their own crypto wallets. Still, the crypto company doesn’t have its own blockchain where it can process—and receive fees—for the volume of payments that pass through its services.

“They want to own that piece of money movement as well,” Bam Azizi, cofounder and CEO of the crypto payments startup Mesh, told Fortune, in reference to Circle.

But Stripe and Circle aren’t on the same footing. Stripe is one of the biggest private companies in tech. It’s a dominant payments processor whose revenue is already diversified—including $500 million in annual revenue run rate as of January from its Stripe Billing vertical.

Circle, on the other hand, derived more than 96% of its revenue in the second quarter of 2025 purely from the interest it earns on the U.S. treasuries backing its stablecoin. If interest rates go down, its entire business model could be threatened. 

“We’re building a full stack, from the infrastructure layer to the stablecoin layer to the payment network layer,” Circle CEO Jeremy Allaire said in a live interview with The Information about his company’s second-quarter earnings. (A spokesperson for Circle declined to comment further.)

That said, some think the newly-public company is playing catch up.

“Circle is being defensive and reactive,” said Hadick, the general partner at Dragonfly. “And Stripe is thinking about the future of payments and the future of their business, and being offensive and proactive.”

On the new Fortune Crypto Playbook vodcast, Fortune’s senior crypto experts decode the biggest forces shaping crypto today. Watch or listen now



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HP’s chief commercial officer predicts the future will include AI PCs that don’t use the cloud

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Increased focus on “privacy and security” may open the door for AI-enabled devices rather than rely entirely on cloud computing and remote data centers. 

“In a world where sovereign data retention matters, people want to know that if they input data to a model, the model won’t train on their data,” David McQuarrie, HP’s chief commercial officer, told Fortune in October. Using an AI locally provides that reassurance.

HP, like many of its devicemaking peers, is exploring the use of AI PCs, or devices that can use AI locally as opposed to in the cloud. “Longer term, it will be impossible not to buy an AI PC, simply because there’s so much power in them,” he said. 

More broadly, smaller companies might be served just as well by a smaller model running locally than a larger model running in the cloud. “A company, a small business, or an individual has significant amounts of data that need not be put in the cloud,” he said. 

Asian governments have often had stricter rules on data sovereignty. China, in particular, has significantly tightened its regulations on where Chinese user data can be stored. South Korea is another example of an Asian country that treats some locally sourced data as too sensitive to be housed overseas. 

Governments the world over, and particularly in Asia, are also investing in local sovereign AI capabilities, trying to avoid relying entirely on systems and platforms housed wholly overseas. South Korea, for example, is partnering with local tech companies like search giant Naver to build its own AI systems. Singapore is investing in projects like the Southeast Asian Languages in One Network (SEA-LION), which are better tailored to Southeast Asian countries. 

Asian AI adoption

Asia is HP’s smallest region, but also its fastest-growing. Revenue from Asia-Pacific and Japan grew by 7% over the company’s 2025 fiscal year, which ended in October, to hit $13.3 billion. That’s around a quarter of HP’s total revenue of $55.3 billion. (HP’s other two regions are the Americas; and Europe, the Middle East, and Africa.)

McQuarrie also suggested that there was an opportunity to be “disruptive” in Asia. While many business leaders have been eager to embrace AI, at least rhetorically, actual adoption is proving more difficult. A recent survey from McKinsey reports that two-thirds of companies are still in the experimentation phase of AI. 

But McQuarrie believed that AI adoption in Asia could be “just as quick, if not quicker,” than other regions. 

Asia seems to be more comfortable with the use of AI, at least when it comes to users. An October survey from Pew found that fewer people in countries like India, South Korea and Japan reported feeling “more concerned than excited” about AI compared to the U.S. 

When it comes to convincing more companies to adopt AI, let alone AI PCs, McQuarrie said the answer was to make AI functions as seamless as possible, so “that it doesn’t really matter whether you understand that you’re embracing AI or not.”

“What we’re doubling down on is the future of work,” McQuarrie said. “The future of work is a device that makes your experience better and your productivity greater.”

“The fact that we’re using AI in the background? They don’t need to know that.”



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Trump administration waives part of a Biden-era fine against Southwest Air for canceled flights

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The U.S. Department of Transportation is waiving part of a fine assessed against Southwest Airlines after the company canceled thousands of flights during a winter storm in 2022.

Under a 2023 settlement reached by the Biden administration, Southwest agreed to a $140 million civil penalty. The government said at the time that the penalty was the largest it had ever imposed on an airline for violating consumer protection laws.

Most of the money went toward compensation for travelers. But Southwest agreed to pay $35 million to the U.S. Treasury. Southwest made a $12 million payment in 2024 and a second $12 million payment earlier this year. But the Transportation Department issued an order Friday waiving the final $11 million payment, which was due Jan. 31, 2026.

The department said Southwest should get credit for significantly improving its on-time performance and investing in network operations.

“DOT believes that this approach is in the public interest as it incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly,” the department said in a statement. “This credit structure allows for the benefits of the airline’s investment to be realized by the public, rather than resulting in a government monetary penalty.”

The fine stemmed from a winter storm in December 2022 that paralyzed Southwest’s operations in Denver and Chicago and then snowballed when a crew-rescheduling system couldn’t keep up with the chaos. Ultimately the airline canceled 17,000 flights and stranded more than 2 million travelers.

The Biden administration determined that Southwest had violated the law by failing to help customers who were stranded in airports and hotels, leaving many of them to scramble for other flights. Many who called the airline’s overwhelmed customer service center got busy signals or were stuck on hold for hours.

Even before the settlement, the nation’s fourth-biggest airline by revenue said the meltdown cost it more than $1.1 billion in refunds and reimbursements, extra costs and lost ticket sales over several months.



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Trump slams Democratic congressman as disloyal for not switching parties after pardon

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Trump blasted Cuellar for “Such a lack of LOYALTY,” suggesting the Republican president might have expected the clemency to bolster the GOP’s narrow House majority heading into the 2026 midterm elections.

Cuellar, in a television interview Sunday after Trump’s social media post, said he was a conservative Democrat willing to work with the administration “to see where we can find common ground.” The congressman said he had prayed for the president and the presidency at church that morning “because if the president succeeds, the country succeeds.”

Citing a fellow Texas politician, the late President Lyndon Johnson, Cuellar said he was an American, Texan and Democrat, in that order. “I think anybody that puts party before their country is doing a disservice to their country,” he told Fox News Channel’s “Sunday Morning Futures.”

Trump noted on his Truth Social platform that the Democratic President Joe Biden’s administration had brought the charges against Cuellar and that the congressman, by running once more as a Democrat, was continuing to work with “the same RADICAL LEFT” that wanted him and his wife in prison — “And probably still do!”

“Such a lack of LOYALTY, something that Texas Voters, and Henry’s daughters, will not like. Oh’ well, next time, no more Mr. Nice guy!” Trump said. Cuellar’s two daughters, Christina and Catherine, had sent Trump a letter in November asking that he pardon their parents.

Trump explained his pardon he announced Wednesday as a matter of stopping a “weaponized” prosecution. Cuellar was an outspoken critic of Biden’s immigration policy, a position that Trump saw as a key alignment with the lawmaker.

Cuellar said he has good relationships within his party. “I think the general Democrat Caucus and I, we get along. But they know that I’m an independent voice,” he said.

A party switch would have been an unexpected bonus for Republicans after the GOP-run Legislature redrew the state’s congressional districts this year at Trump’s behest. The Texas maneuver started a mid-decade gerrymandering scramble playing out across multiple states. Trump is trying to defend Republicans’ House majority and avoid a repeat of his first term, when Democrats dominated the House midterms and used a new majority to stymie the administration, launch investigations and twice impeach Trump.

Yet Cuellar’s South Texas district, which includes parts of metro San Antonio, was not one of the Democratic districts that Republicans changed substantially, and Cuellar believes he remains well-positioned to win reelection.

Federal authorities had charged Cuellar and his wife with accepting thousands of dollars in exchange for the congressman advancing the interests of an Azerbaijan-controlled energy company and a bank in Mexico. Cuellar was accused of agreeing to influence legislation favorable to Azerbaijan and deliver a pro-Azerbaijan speech on the floor of the U.S. House.

Cuellar has said he his wife were innocent. The couple’s trial had been set to begin in April.

In the Fox interview, Cuellar insisted that federal authorities tried to entrap him with “a sting operation to try to bribe me, and that failed.”

Cuellar still faces a House Ethics Committee investigation.



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