Blockchains, or distributed ledgers that record transactions, have served as the foundation for crypto technology since the introduction of Bitcoin in 2008. The list of available options has proliferated, from mainstay layer 1 offerings like Ethereum and Solana to new generations built on top of old ones. Many have received hundreds of millions of dollars in funding but faded amid a lack of usage.
While some like Ethereum are focused on building decentralized financial applications, a new slate of payment-focused blockchains has emerged over the past year in conjunction with the rise of stablecoins. These promise to process lightning-fast transactions with minimal fees, often built around native tokens—such as Circle’s stablecoin, USDC, or the market leader, Tether—which are often traded on Ethereum but deployed on many other blockchains as well.
Stripe and Paradigm will launch their own blockchain amid this heightened competition. Still, Tempo will have the advantage of Stripe’s built-in customer base, with the startup serving as one of the world’s largest payment infrastructure companies and catering to clients who, for the most part, don’t operate in the crypto realm. Stablecoin proponents have long touted the technology as faster and more efficient than legacy money transfer services like SWIFT and wire transfers, which can be slow and costly. At the same time, adoption has been slowed by companies’ hesitancy toward crypto and the uncertain regulatory landscape.
While other blockchains typically gain value through their native cryptocurrencies, Tempo will not launch with its own token, according to a source, who spoke on the condition of anonymity to discuss private business information. Instead, it will accept different forms of stablecoins as “gas” fees, which are small payments made to a distributed network of entities that run a blockchain.
The source said that there isn’t a timeline yet for Tempo’s launch, though the project already has around 15 employees, including Huang, who will continue to serve as managing partner at Paradigm alongside Alana Palmedo.
