EVM-compatible layer-1 blockchain specifically designed for stablecoins, backed by OpenAI and Visa, handling over 100,000 TPS.
The blockchain industry is witnessing the birth of a new infrastructure as fintech group Stripe and cryptoasset investment fund Paradigm announced the Tempo layer-1 blockchain on Thursday. The project is specifically designed for stablecoins and payments, with design contributions from global corporations such as OpenAI, Visa, and Shopify.
Tempo is compatible with the Ethereum Virtual Machine (EVM) and aims to build a network that enables “high-speed, low-cost global transactions for every enterprise use case.” Matt Huang, founder of Paradigm and project lead, explains : “As stablecoins move into the mainstream, the need for optimized infrastructure is growing. Much of the current cryptoasset technology infrastructure is transaction-oriented but not optimized for payments.”
In addition to low transaction fees and a payments-centric experience, the network is expected to handle over 100,000 transactions per second (TPS) with security features that keep users’ transaction details private. Tempo also integrates an automated market maker (AMM), allowing transaction fees to be paid in any stablecoin.
Competitive strategy and market ambition
Patrick Collison, CEO of Stripe, highlighted the motivation for developing the Tempo blockchain: “At Stripe, we are interested in high-throughput, low-latency payment use cases. As stablecoins are increasingly used across Stripe, Bridge, and Privy, we have found that existing blockchains are not optimized for them.” Stripe’s incubation of Tempo will directly compete with the layer-1 plans of Google and Circle, as cryptoassets increasingly integrate with traditional finance.
The network is currently in private beta, with the development team testing use cases like e-commerce and cross-border payments with global partners. Some design partners are joining as validators, but Tempo will eventually move to an open, permissionless model.
The launch of Tempo reflects Stripe’s aggressive expansion into the crypto space. The company acquired crypto wallet infrastructure Privy in June, less than a year after spending $1.1 billion to acquire stablecoin payments platform Bridge. Thursday also saw the launch of Fireblocks Network, backed by Circle and more than 40 other providers, underscoring the growing competition in the payments blockchain infrastructure segment.
