The fintech giant Stripe is making waves in the crypto world with its latest endeavor: the development of a new blockchain named Tempo. This information comes from a recent job posting spotted on a website affiliated with the Blockchain Association, a prominent crypto lobby group. According to the listing, titled “Tempo is a high-performance, payments-focused blockchain,” it’s clear that Stripe is deepening its involvement in the cryptocurrency space.
The job advertisement indicates that Tempo is currently in stealth mode, being developed by a tight-knit team of just five individuals. Notably, this project is in collaboration with Paradigm, a leading venture capital firm specializing in crypto investments. Matt Huang, a cofounder and managing partner at Paradigm, also sits on Stripe’s board, suggesting a strategic alliance that could significantly enhance Tempo’s development.
It’s interesting to note that Tempo will be a layer 1 blockchain, meaning it’s designed to operate independently rather than being built on other existing protocols. This gives it a level of autonomy that could attract various developers and businesses looking for reliable blockchain solutions. Moreover, it is reported to be compatible with Ethereum’s coding language, further widening its potential user base. This compatibility could streamline integrations and foster collaborations within the crowded blockchain ecosystem.
While Stripe’s spokespeople and those from Paradigm have chosen to stay mum on the matter, the interest generated by the job posting indicates that there’s significant intrigue surrounding Tempo. Shortly after inquiries from Fortune, the job listing was taken down, hinting that Stripe may want to keep details under wraps for now.
The venture into blockchain is yet another bold move from Stripe, a company that has rapidly grown to an impressive valuation of nearly $92 billion by providing simplified payment solutions for businesses. Known for its intuitive payment products like streamlined online checkouts and automated invoicing, Stripe has been a key player in transforming how businesses handle transactions. Tempo represents a shift towards integrating blockchain capabilities into that already robust framework.
This development comes on the heels of Stripe’s announcement in October of a significant $1.1 billion acquisition of the stablecoin infrastructure firm Bridge. This acquisition appears to be a strategic step aimed at integrating stablecoins more seamlessly into payment flows. In addition, the company recently acquired the crypto wallet developer Privy, allowing it to enhance its offerings by building wallets that help customers manage their cryptocurrency holdings effectively.
Stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar, have sparked newfound interest in the financial sector. Advocates argue they present a more effective payment technology compared to traditional systems like SWIFT or wire transfers. By adopting stablecoins, Stripe aims to potentially reduce cross-border payment costs and transaction fees, thereby enhancing its user experience.
Despite stablecoins being a topic for over a decade, recent changes, such as the signing of the GENIUS Act into law by President Donald Trump in July, have created an impetus for broader regulatory guidance surrounding this burgeoning sector. The renewed interest in stablecoins has generated excitement among various industries, prompting major tech players such as Meta, Apple, and Airbnb to explore possible stablecoin integrations.
Amidst this flurry of activity, Stripe is positioning itself as a frontrunner in stablecoin adoption. “We are now seeing meaningful business interest in stablecoins as the underlying technology has matured,” stated Patrick Collison, Stripe’s CEO, during testimony to the House in March. His remarks underline a growing recognition of stablecoins as a serious contender in modern payment technology.
With the acquisition of Bridge, Stripe now owns a platform that enables companies to integrate stablecoins into their payment solutions and even create their own stablecoin offerings. Acquisition of Privy further bolsters this capability, allowing for customer-friendly wallet development. The introduction of a new blockchain, Tempo, adds another layer of control and flexibility, positioning Stripe to effectively handle stablecoin transactions within its ecosystem.
As of now, Stripe hasn’t publicly outlined its intentions behind building a dedicated blockchain or whether it plans to issue a cryptocurrency to support it. However, the step into blockchain technology signals a serious commitment to redefining the payment landscape, particularly with stablecoins at the forefront of its strategy.
