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- Vitalik Buterin endorses Codex, highlighting its Ethereum L1 synergy.
- Experts debate whether decentralized L2s or corporate chains will dominate stablecoin payments.
- Codex’s decentralized design may offer a competitive edge over permissioned systems like Stripe’s Tempo.
Ethereum co-founder Vitalik Buterin has publicly endorsed Codex, a Layer-2 (L2) blockchain focused on stablecoin payments, highlighting its strategic positioning and synergy with Ethereum L1. The endorsement marks a significant moment in the rapidly evolving stablecoin payments space, especially amid heated debates over scalability and corporate competition.
Cheap stablecoin transactions continue to be one of the most important sources of large-scale value that crypto provides today.
— vitalik.eth (@VitalikButerin) September 5, 2025
Excited to see @codex_pbc joining the arena as an L2 and thinking explicitly about synergy between itself and ethereum L1 from day one. https://t.co/BuCyZZqYgh
Ethereum L2s Under the Spotlight
Buterin praised Codex for thinking “explicitly about synergy between itself and Ethereum L1 from day one,” emphasizing the potential value of large-scale L2 projects. The announcement follows Stripe’s recent Tempo launch, an L1 payment-focused chain designed to handle growing stablecoin demand. However, this also exposed limitations in existing networks, prompting criticism toward Ethereum L2s across Crypto Twitter.
The stablecoin segment is now a hotbed of innovation and scrutiny, with L2s like Codex aiming to reclaim the narrative by leveraging Ethereum’s decentralized architecture.
Experts Debate Early Winners
Market experts caution against prematurely declaring winners in the stablecoin wars. Fundstrat CIO Tom Lee aligns with Christian Catalini, Lightspark founder, who draws lessons from the Libra project’s regulatory challenges. Catalini warns that corporate chains like Tempo or Arc could create chokepoints for governments, limiting the true potential of decentralized finance.
28/ If corporate chains like Tempo and Arc succeed, it will mean the crypto experiment was not a revolution, but a failed coup. The backend technology would be different, yes, but the market structure would be eerily familiar.
— Christian Catalini (@ccatalini) September 5, 2025
Helius Labs founder Mert Mumtaz adds that transitioning from permissioned to permissionless systems, as Tempo plans, will be challenging. “Open it up, and you face what truly comes with permissionless systems,” he said, underscoring the advantage decentralized L2s like Codex may have.
Also Read: Arbitrum Price Risks Slide as Ethereum Struggles to Reclaim $4,500
Corporate Chains vs Decentralized L2s
While large corporates like Stripe, Google, and Tether offer impressive distribution channels, some analysts argue that history favors product innovation over pure distribution. Rob Hadick of Dragonfly Ventures noted, “History of payments innovation tells you it’s more of a product game than just a distribution game,” suggesting that Codex’s decentralized design and payment-first approach could give it a competitive edge.
Codex’s early L2 positioning and Buterin’s endorsement signal Ethereum’s continued relevance in the evolving stablecoin ecosystem. While corporate-backed chains hold strong distribution advantages, decentralized innovations may redefine how stablecoins integrate with payments, potentially tipping the balance in Ethereum’s favor over time.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
