The Future of Finance: Who Will Dominate the "Layer 1" of DeFi?

August 18, 2025 - 03:56

The ongoing debate surrounding the "Layer 1" infrastructure of decentralized finance (DeFi) is not merely about stablecoins; it delves deeper into the very future of financial systems. As the landscape evolves, questions arise about whether entities like Circle or Stripe can effectively provide this foundational layer or if the responsibility will fall to larger players such as Big Tech firms or government institutions.

The emergence of DeFi has sparked a revolution in how financial transactions are conducted, emphasizing transparency, accessibility, and efficiency. However, the challenge remains in creating a robust and scalable infrastructure that can support the growing demand for decentralized applications. The involvement of established companies could accelerate innovation, but it also raises concerns about centralization and control.

As the competition heats up, stakeholders in the financial ecosystem are closely watching how these dynamics unfold. The outcome will likely shape the future of finance, determining who will lead the charge in building the next generation of financial services. The question remains: will it be the innovators of DeFi, or will traditional powerhouses reclaim their influence in this new era?