Stripe Collaborates with Paradigm VC to Construct Stablecoin Blockchain, Tempo
Stripe and Paradigm Unveil Stealth Blockchain for High-Performance Stablecoin Payments
In a significant move, tech payment giant Stripe and venture capital firm Paradigm have jointly developed a new layer 1 blockchain called Tempo. This stealth-mode project is designed to be Ethereum-compatible, focusing on high-performance stablecoin transactions to enhance speed and reduce costs [1][2][3].
Tempo's leadership is spearheaded by Matt Huang, co-founder of Paradigm and a board member at Stripe, underscoring the deep collaboration between the two entities [1][2]. The project currently operates with a small dedicated team of around five members, with details such as the launch date and the existence of a native token remaining undisclosed [1][2][5].
This initiative is part of Stripe's broader push into the stablecoin payments sector, bolstered by recent acquisitions of stablecoin infrastructure firms Bridge and crypto wallet developer Privy [3][5]. The acquisitions position Stripe to control critical components of the stablecoin ecosystem, suggesting a tight integration between its blockchain venture and stablecoin initiatives to drive enterprise adoption and expand Web3 capabilities.
The stablecoin market, currently boasting a large and growing market cap of approximately $270 billion, benefits from regulatory clarity in the U.S., as highlighted by the passage of the GENIUS Act, which likely encourages Stripe's investment and development in this area [2][3][5].
Meanwhile, Tether, another stablecoin issuer, has moved into dedicated blockchain infrastructure. By owning a major stake in the blockchain infrastructure, Tether aims to capture a portion of those transaction fees directly [4]. Tether CEO Paolo Ardoino claimed that 40% of blockchain gas fees are for Tether-linked transactions [4].
Competition in the blockchain sector is heating up, with Stripe, Circle, and Tether each having their own grand strategies. Stripe recently launched stablecoin accounts targeting offshore entrepreneurs, including in jurisdictions that Stripe's core business doesn't currently serve [6]. Meanwhile, Circle unveiled its own blockchain named Arc, and Bridge, a startup acquired by Stripe, unveiled its own stablecoin USDB [4][7].
In contrast, Tether's goal in moving into blockchain infrastructure seems to be more prosaic, focusing on capturing transaction fees rather than creating a new high-performance blockchain like Tempo. The job advert for a marketing person to join the Tempo stealth startup highlights key skills such as experience targeting Fortune 500 audiences and the ability to translate crypto concepts for a mainstream audience [8].
Sources:
- Tempo: Stripe and Paradigm's new blockchain
- Stripe and Paradigm are building a new blockchain called Tempo
- Stripe acquires Bridge, a stablecoin infrastructure startup, for $1.1 billion
- Tether moves into dedicated blockchain infrastructure
- Stripe's blockchain ambitions and the stablecoin market
- Stripe launches stablecoin accounts for offshore entrepreneurs
- Bridge unveils its own stablecoin USDB
- Job advert for a marketing person to join the Tempo stealth startup
Tempo's focus on high-performance stablecoin transactions, a feature of the new blockchain developed by Stripe and Paradigm, aims to reduce costs and enhance speed, leveraging advancements in blockchain technology. The project, still in stealth mode, is spearheaded by Matt Huang, a co-founder of Paradigm and a board member at Stripe, suggesting a strategic collaboration between the entities.
