For a movement devoted to democratization, crypto has a weird obsession with supremacy plays. The latest fixation is the "stablecoin singularity" – an inflection point when programmable dollars flow as seamlessly as emails and the line between cash and code fades away.

That point may be closer than sceptics think. Stablecoins have already become the instrument of choice for moving money across borders and between platforms. Yet the pipes carrying them are starting to creak.

Most stablecoins ride blockchains built for broader purposes. Ethereum, Solana and Tron were designed to juggle smart contracts, digital art and speculative trading, not trillions in dollar-pegged tokens. The result is bottlenecks. Fees spike, settlements drag, and institutions hesitate.

Into the gap step a clutch of newcomers: blockchains designed solely for stablecoin finance. They promise lower costs, stricter compliance and smoother links to banks. Whether incumbents or challengers, the real question is whether any network can persuade risk-averse financiers to entrust it with the plumbing of global money.

Cash, coded

The attraction is obvious. Transfers that once took days with fees that ate into margins could settle in seconds, and for pennies. Consumers get control and businesses shed middlemen. But the dream is well ahead of the infrastructure. 

Ethereum, still dominant, is not optimized for high-frequency payments; its gas fees can exceed the sums being sent. That explains why many users have shifted to Tron, a cheaper if more centralized network. The incumbents are scrambling to improve: Ethereum through "rollups", Solana with throughput boosts. But their broad remit leaves them less focused on the specific needs of stablecoin payments.

The race to own the rails

That creates an opening. At least three new contenders are vying to build the definitive "stablecoin rail". Each illustrates a different path the market might take.

Arc is the most institutionally connected. Launched by Circle, issuer of USDC (the second-largest stablecoin), it draws on $68bn of tokens in circulation and close ties to banks and regulators. Freshly floated in New York under the ticker CRCL, Circle is betting that compliance-minded institutions will prefer a blockchain with safeguards baked in.

1Money is the most single-minded. A new Layer 1 chain built solely for payments, it strips out smart contracts, NFTs and games. With $20m in backing, its aim is to do one thing only: provide instant, compliant cross-border transfers.

Plasma may be the scrappiest. Rather than chase every stablecoin, it focuses squarely on USDT, which holds a 60% market share despite periodic questions over its reserves. Plasma is also building a bridge to Bitcoin, seeking to link the most used stablecoin with the oldest cryptocurrency.

Hard yards ahead

And don't expect incumbents to go quietly. Ethereum's Layer 2s are multiplying; Solana has clawed back credibility after past outages; Tron remains dominant in Asia. Blockchain history is littered with "Ethereum killers" that never made it beyond white papers. Stablecoin-specific chains face the added risk that by optimizing for today's regulatory and technical environment, they may find tomorrow's looks different.

The take away

Crypto's attention often flits to The Current Thing– memecoins one week, gaming tokens the next. But the most consequential battle may be over something less glitzy: the pipes that digital dollars run through. Whoever controls them will shape how money moves in the digital age.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.