Stripe Developing its Own Foundation Blockchain, According to Reports
Fintech giant Stripe is making waves in the crypto world with the development of a new blockchain project called Tempo. The high-performance, payments-focused Layer 1 blockchain is being developed in partnership with crypto venture firm Paradigm, and is designed to be Ethereum-compatible, allowing developers to use existing Ethereum Solidity tools.
The goal of Tempo is to give Stripe full-stack control over payment processing, optimizing for network speed, reducing fees, and integrating stablecoin transactions more efficiently. This strategic move aligns with Stripe's broader crypto strategy that includes recent acquisitions of stablecoin infrastructure firm Bridge for $1.1 billion and crypto wallet startup Privy. These acquisitions allow Stripe to control key pieces of the stablecoin payments ecosystem.
With Tempo, Stripe aims to strengthen its foothold in the fast-growing $270 billion stablecoin sector. Having a proprietary blockchain could allow Stripe to capture more transaction fees, even from users who aren’t Stripe customers, enhancing profitability and competitive positioning. Moreover, owning a dedicated payments blockchain optimized for stablecoins may enable Stripe to expand beyond payments into related services such as smart contracts and enhanced digital security.
However, Tempo competes in a crowded market of existing public and private blockchains, including other stablecoin-focused Layer 1 blockchains like Circle’s Arc. The project's stealth status means many technical details remain undisclosed, including whether Tempo will have a native token.
As the largest privately-owned fintech, Stripe has processed over $1.4 trillion in payment volume as of 2024. The strategy of Stripe aligns with recent stablecoin regulatory clarity in the U.S. following the passage of the GENIUS Act into law. As of the latest valuation, Stripe is worth approximately $91 billion.
This news comes from a report by Fortune and is an excerpt from the Unchained Daily newsletter. The potential impact of Tempo centers on strengthening Stripe's position in the crypto world, and could significantly shape the future of stablecoin payments and the broader payments industry.
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