Stripe and Paradigm are announcing Tempo, a new layer-1 blockchain designed for high-throughput stablecoin payments.
According to Stripe CEO Patrick Collison on X, Tempo will aim to support real-world financial applications such as global payouts, remittances, microtransactions, and AI-driven payments with over 100,000 transactions per second and sub-second finality.
“As such, we decided to incubate Tempo, a new blockchain, in partnership with Paradigm. We think of Tempo as the payments-oriented L1, optimized for high-scale, real-world financial services applications.”
Unlike other blockchains that charge fees in native tokens, Tempo will allow fees to be paid in fiat-pegged stablecoins, improving user experience for financial services.
According to Collison, Tempo is an independent company incubated by Stripe and Paradigm, led by Paradigm co-founder Matt Huang. The project has attracted major partners including Anthropic, Deutsche Bank, DoorDash, OpenAI, Revolut, Shopify, Standard Chartered, and Visa, who will help shape its design. The blockchain will start with a diverse set of validators and plans to move to permissionless validation.
Tempo will aim to meet the growing demand for payment-optimized blockchain infrastructure, addressing limitations of existing blockchains that focus more on trading than payments.
The blockchain will feature an automated market maker for stablecoins and offer compatibility with Ethereum Virtual Machine (EVM). Tempo is now in a private test phase, exploring use cases like cross-border payments and e-commerce.
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Featured Image: Shutterstock/Mia Stendal/WindAwake
