Fintech giant Stripe and crypto venture firm Paradigm have announced their collaboration on a new project named Tempo. The Layer-1 (L1) blockchain, designed specifically around stablecoins, aims to streamline digital transactions and enhance payment efficiency.
Tempo emerges as part of a growing trend of Layer-1 blockchains dedicated to stablecoin integration, joining the ranks of initiatives like Circle’s Arc and Tether’s Plasma Layer-1 blockchains compatible with the Ethereum Virtual Machine (EVM).
These blockchains often utilize native tokens, such as Circle’s USDC or Tether’s USDT stablecoins, which are frequently traded on the Ethereum blockchain yet deployed across various networks.
Despite the competitive environment, Tempo benefits from Stripe’s customer base. As one of the largest payment infrastructure providers globally, Stripe caters to a clientele that largely remains outside the crypto sphere.
As for the timeline for Tempo’s launch, details remain scarce; however, the project is currently staffed by around 15 employees, including Huang, who will continue his role at Paradigm alongside Alana Palmedo.
While Stripe is incubating Tempo, Paradigm emphasizes the intention for the blockchain to maintain a sense of neutrality. It remains uncertain whether other payment providers will adopt this new technology.
However, the involvement of various partners, including Anthropic, OpenAI, Deutsche Bank, and Shopify, suggests a collaborative effort to develop a new payment solution.
Featured image from DALL-E, chart from TradingView.com
