Every Fintech Firm Expected to Launch Own Blockchain in Next Five Years
OP Labs predicts that all cryptocurrency exchanges and fintech firms will operate their own blockchains within five years, driven by the success of Coinbase’s layer-2 network, Base. Key points include:
- Base has attracted a large ecosystem of users and developers since its 2023 launch.
- Base enables monetization of dormant crypto assets via lending, enhancing asset utility.
- Built on Optimism's OP Stack, Base offers faster, cheaper transactions compared to Ethereum’s base layer.
- McIngvale anticipates seamless integration, allowing users to borrow USDC against bitcoin held on Coinbase.
- Both Optimism and Arbitrum utilize optimistic rollups for transaction validation, improving Ethereum's throughput.
- Holding crypto incurs costs due to security measures, unlike traditional equity custody.
- Other exchanges like Kraken, Bybit, Bitget, and OKX are also developing layer-2 solutions using Optimism.
- Fintech companies, including Robinhood, are exploring their own layer-2 networks.
- Optimism aims for an interoperable “Superchain,” facilitating user transitions between blockchains.