The Architecture
On August 17, 2017, two of the cryptocurrency world’s longest-operating businesses made a decisive move that signals a structural shift in how digital asset infrastructure handles multi-chain ecosystems. Blockchain, the London-based Bitcoin wallet provider with millions of users worldwide, and Bitstamp, the Luxembourg-based exchange that has operated since 2011, both announced they are adding full Ethereum support to their platforms.
For Blockchain, the decision represents a significant philosophical pivot. CEO Peter Smith had publicly acknowledged only weeks earlier at Fortune’s Brainstorm Tech conference in Aspen that he had been skeptical of Ethereum’s viability. The company’s adoption of Ether—the native cryptocurrency of the Ethereum network—marks a recognition that the blockchain landscape is no longer a single-chain world. Users can now buy, sell, and store Ether directly through Blockchain’s wallet interface, a feature previously reserved exclusively for Bitcoin.
Bitstamp, one of the oldest and most respected cryptocurrency exchanges in Europe, simultaneously opened Ether trading on its platform. CEO Nejc Kodriŭ announced that customers would enjoy zero-transaction-fee ETH trading until October 1, 2017, followed by steep discounts through the end of the year—a clear play to onboard liquidity and establish Bitstamp as a premier Ethereum trading venue.
Consensus Mechanisms
The dual announcement underscores the growing consensus among infrastructure providers that Ethereum has matured beyond its experimental phase. Created in 2014 by Vitalik Buterin, a Russia-born programmer who appears on Fortune’s 2017 40 Under 40 list, Ethereum has become the backbone of an entirely new asset class: digital tokens built on smart contracts.
The numbers tell the story. The total cryptocurrency market capitalization has surged past $140 billion in August 2017, up from under $20 billion at the start of the year. Ethereum alone represents approximately $28 billion of that value, making it the second-largest cryptocurrency by market cap behind Bitcoin’s $71 billion. The Initial Coin Offering (ICO) boom, powered almost entirely by Ethereum’s ERC-20 token standard, has been the primary catalyst for this explosive growth.
Blockchain’s partnership with ShapeShift.io, a Switzerland-based cryptocurrency exchange specializing in instant atomic swaps, further illustrates how multi-chain architecture is being woven into the user experience. Customers can now trade between Bitcoin and Ethereum seamlessly without leaving the Blockchain wallet, reducing friction and eliminating the need for multiple accounts across different platforms.
Network Health
Security remains the paramount concern for any platform adding new assets. Bitstamp itself was hacked for $5 million in 2015, a reminder that even established exchanges face significant operational risks. The cautious approach both companies have taken—waiting years after Ethereum’s launch before integrating it—reflects an industry-wide tension between innovation speed and security posture.
Regulatory headwinds add another layer of complexity. The U.S. Securities and Exchange Commission recently issued a warning that digital tokens may be classified as securities under existing financial laws. By supporting Ethereum specifically—a cryptocurrency rather than a token issued through an ICO—both Blockchain and Bitstamp appear to be making a calculated bet on the assets least likely to face immediate regulatory action.
The move also positions both companies competitively against Coinbase, the U.S.-based cryptocurrency broker that became the industry’s first unicorn startup—valued at over $1 billion—after raising $100 million in funding earlier in August 2017. Coinbase has offered Ethereum trading since 2016, giving it a significant head start in the multi-asset market.
Developer Ecosystem
Ethereum’s developer community continues to expand at a remarkable pace. The platform’s smart contract functionality has attracted thousands of developers building decentralized applications (dApps), from prediction markets to supply chain management tools. The infrastructure expansions by Blockchain and Bitstamp will make it significantly easier for mainstream users to interact with these applications by providing familiar, trusted on-ramps.
The timing is notable: Bitcoin is navigating its own technical evolution with the activation of SegWit2x, a scaling upgrade that has divided the mining community and already spawned Bitcoin Cash as a competing hard fork. As Bitcoin’s governance challenges persist, Ethereum’s relatively unified development roadmap makes it an increasingly attractive platform for both developers and institutional infrastructure providers.
Final Assessment
The simultaneous adoption of Ethereum by Blockchain and Bitstamp represents more than a simple product update—it marks a turning point in cryptocurrency infrastructure. The industry is moving decisively from a Bitcoin-only mindset to a multi-chain ecosystem where users expect access to multiple digital assets through a single platform. For Ethereum, the endorsement from two of the space’s most established companies provides both legitimacy and practical utility at a time when the network’s value proposition has never been stronger.
With Coinbase already offering Ethereum for over a year and new entrants flooding the ICO market daily, the infrastructure race is accelerating. The companies that can provide secure, regulated, user-friendly access to the broadest range of quality digital assets will define the next phase of cryptocurrency adoption.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
Blockchain.com had the domain and the SEO and somehow lost to a hardware wallet company and a DEX. worst pivot in crypto history
Bitstamp had first mover advantage in EU and still lost to Binance in 2 years. regulation was their moat until it became their ceiling
Peter Smith literally said he was skeptical about ETH at Aspen then shipped support a month later. same energy as every CEO who FUDs then adopts
blockchain.com had the domain literally everyone typed to learn about crypto in 2014. what a waste of the best url in the industry
Blockchain.com had the domain, the users, and the head start. Bitstamp had the exchange volume. Both bet on ETH within 24 hours of each other and neither maintained dominance past 2020
Smith doubting ETH at Fortune Brainstorm then shipping support weeks later is the original exchange pivot template. every CEO does this now with new narratives
cassie_d the pivot template is real. every CEO does this now. coinbase added shib after calling it useless, same pattern
peter smith publicly doubting eth and then adding support weeks later is the ultimate ‘i was wrong’ without actually saying it
blockchain(dot)com going multi-chain in 2017 and now basically being irrelevant in 2026. being early does not guarantee staying relevant
having blockchain(dot)com as your domain was basically the only competitive advantage they had. the wallet itself was clunky compared to electrum even back then
blockchain.com being irrelevant in 2026 proves first mover advantage means nothing without execution. Bitstamp at least kept their exchange running
Henrik V. calling blockchain.com irrelevant in 2026 is spot on. they had the domain, the users, everything. pivoting to ETH was a headline grab not a strategy
Kofi A. Bitstamp was Bitcoin-only for 6 years and added ETH in 2017. people forget they were the EU compliance gold standard back then. that reputation mattered more than wallet features
peter smith doubting ETH at fortune brainstorm tech and then shipping ETH support weeks later is peak 2017 crypto energy
peter smith doing a full 180 on ETH within weeks is peak 2017 crypto energy. nobody admitted they were wrong, they just shipped the feature and pretended
Bitstamp supporting ETH in August 2017 was a big deal. They had been Bitcoin-only for six years at that point.
Bitstamp stayed relevant way longer than blockchain(dot)com though. being an exchange with actual liquidity matters more than wallet downloads
Bitstamp survived because they actually processed withdrawals without a 3 week delay. low bar but in 2017 that made them top tier
Peter Smith being publicly skeptical of ETH then adding support weeks later. classic pivot when user demand forces your hand. same thing exchanges do today with new tokens
Bitstamp adding ETH in 2017 was a bigger deal than people remember. they were the gold standard for EU compliance back then