Two influential tech firms in Silicon Valley have announced a collaborative effort that aims to transform the payments landscape. Stripe, valued at $91.5 billion and recognized as a fintech leader, has joined forces with Paradigm, a prominent crypto venture firm, to introduce Tempo, a new layer 1 blockchain designed primarily around stablecoins—cryptocurrencies that are typically pegged to the U.S. dollar.
Layer 1 blockchains, such as Bitcoin and Ethereum, are known for their complexity and the demanding infrastructure required to develop and maintain them. Tempo represents a wave of new layer 1 initiatives centered on stablecoins, positioning itself alongside other notable projects like Circle’s Arc and Tether’s Plasma and Stable.
This announcement comes at a crucial juncture in the cryptocurrency space, characterized by a resurgence in interest. The favorable stance taken by the Trump administration toward the crypto sector, coupled with recent legislative progress—including a stablecoin-focused bill passed in July—has encouraged larger firms and traditional financial institutions to explore blockchain technology. Stripe, however, has been ahead of the curve, making significant investments in stablecoin and crypto wallet companies over the past few years.
By partnering with Paradigm, which is led by managing partner and Stripe board member Matt Huang, Stripe is further cementing its commitment to the future of crypto in global payments. Blockchains, functioning as distributed ledgers for recording transactions, have been the backbone of cryptocurrency since the launch of Bitcoin over a decade ago. The blockchain landscape has seen a dramatic increase in available options, ranging from established layer 1 blockchains like Ethereum and Solana to new projects designed to operate on existing networks. Some of these newer initiatives have received substantial funding but have struggled with adoption and practical use cases.
While many existing blockchains focus on decentralized financial applications, a fresh batch aimed at payment processing has emerged alongside the rise of stablecoins, promising quick transactions at low costs. They often utilize native tokens for trading, with examples like Circle’s USDC and Tether as leading assets in this category.
Tempo’s emergence into this competitive environment may be bolstered by Stripe’s wide-reaching customer base, as the company serves a multitude of clients, most of whom are not deeply entrenched in the cryptocurrency world. Advocates of stablecoins argue that the technology can revolutionize payment systems, offering speed and efficiency compared to traditional transfer methods, such as SWIFT and wire transfers, which are often slow and costly. However, widespread adoption still faces challenges, notably due to corporate wariness surrounding cryptocurrencies and the ongoing evolution of regulatory frameworks.
Details regarding Tempo’s launch are still murky; a source revealed that the project will not introduce its own native token at the outset. Instead, it will facilitate transactions using various forms of stablecoins as “gas” fees—essential small payments that reward the network of entities maintaining the blockchain. Currently, around 15 employees are involved in the Tempo initiative, including Huang, who will also continue his role at Paradigm.
In the accompanying blog post from Paradigm, it was emphasized that Tempo aims to address global payments, remittances, microtransactions, and agentic payments, which are transactions facilitated by AI agents. The blog expressed a vision for maintaining the project’s neutrality, although it’s still uncertain whether other payment operators will engage with Tempo’s blockchain. The development of this project will also involve several other partners, including Anthropic, OpenAI, Deutsche Bank, and Shopify.
