Two prominent companies in Silicon Valley are joining forces to reshape the payments industry. Stripe, a fintech powerhouse valued at $91.5 billion, has announced a collaboration with Paradigm, a prominent crypto venture firm, to develop Tempo. This initiative centers around a Layer-1 blockchain specifically designed for stablecoins—cryptocurrencies that are typically tied to the value of the U.S. dollar.
Layer-1 blockchains, such as Bitcoin and Ethereum, demand more resources in terms of construction and maintenance compared to Layer-2 solutions, which function on top of existing blockchains. Tempo is part of a growing number of Layer-1 projects focused on stablecoins, alongside notable competitors like Circle’s Arc and Tether’s Plasma and Stable.
The unveiling of this blockchain coincides with a significant resurgence in the crypto market. Recent supportive moves from the Trump administration and the passage of a stablecoin-focused bill by Congress in July have encouraged larger institutions—traditionally skeptical of blockchain technology—to explore opportunities within the sector. Stripe has emerged as a leading player in this arena, having made pivotal acquisitions in the stablecoin and crypto wallet space.
By collaborating with Paradigm, Stripe reinforces its commitment to a future where crypto plays a pivotal role in global payments. Matt Huang, a managing partner at Paradigm and a member of Stripe’s board, is leading the Tempo initiative.
Blockchains, which function as distributed ledgers to record transactions, have been the cornerstone of cryptocurrency technology since Bitcoin’s inception in 2008. The variety of blockchain options has expanded dramatically, ranging from established Layer-1 platforms like Ethereum and Solana to newer iterations built upon them. Although many of these projects have garnered substantial financial backing, a number have struggled to find their footing due to low user engagement.
A new wave of payment-oriented blockchains has emerged in recent times, focused on harnessing the benefits of stablecoins. These systems promise rapid transaction processing with reduced fees, often utilizing native tokens such as USDC or Tether, which although frequently traded on Ethereum, operate across multiple blockchain platforms.
As Stripe and Paradigm prepare to launch Tempo, they enter a fiercely competitive landscape. However, Tempo benefits from Stripe’s extensive customer base, positioning it well within the payment infrastructure sector. Many Stripe customers are not yet engaged with crypto, and stablecoin advocates have long asserted that these digital currencies can offer faster and more efficient transaction alternatives to traditional money transfer methods such as SWIFT or wire transfers. Nevertheless, broader adoption has been hampered by companies’ hesitance to fully embrace crypto and the ambiguous regulatory environment surrounding it.
Interestingly, unlike many other blockchain projects that utilize their own native cryptocurrencies, Tempo will initially operate without a unique token. Instead, it will accept various forms of stablecoins as “gas” fees—small payments necessary for the maintenance of a blockchain network.
While the timeline for Tempo’s rollout is not yet clear, reports suggest that the project has already assembled a team of around 15 employees, including Huang, who will retain his role at Paradigm alongside Alana Palmedo.
Paradigm’s announcement elaborated on Tempo’s focus areas, which encompass global payments, remittances, microtransactions, and AI-driven transactions—often referred to as agentic payments. The company asserts that blockchain technology is crucial for these innovative payment methods. Despite Stripe’s guiding hand on the project, Paradigm emphasizes its intent for Tempo to uphold a stance of “neutrality,” though it remains uncertain whether other payment providers will adopt the blockchain. Additionally, various partners—including Anthropic, OpenAI, Deutsche Bank, and Shopify—are expected to collaborate in the development of Tempo.
