Key Takeaways
- Stripe and Paradigm are collaborating to build Tempo Blockchain.
- The main aim of the blockchain is to resolve existing issues with international payments.
- The creation of the blockchain is an additional phase in Stripe’s cryptocurrency strategy.
FinTech firm Stripe has allegedly inked a collaboration with crypto VC firm Paradigm to build the Tempo Blockchain. The announcement for the new development came via a now-removed job posting dated Aug. 3 on the Blockchain Association website.
The Tempo blockchain has been described as a payments-focused Layer 1 blockchain.
Tempo Blockchain: What Do We Know So Far
Tempo has been defined as a layer 1 blockchain that is “high-performance, payments-focused”, per a Fortune report. The blockchain will execute Ethereum-compatible code that will cater to a diverse group of investors. With a crew of five, the project is in stealth. It is uncertain at the moment if Tempo will have a native token of its own.
The main aim of the blockchain is to resolve existing issues with international payments, such as the costs and delays connected to conventional banking systems. Tempo will also enable integration of applications for TradFi and DeFi into the open-source blockchain network.
With Web3 technologies on the rise, Stripe wants to establish itself as a well-known international financial network.
Stripe’s New Blockchain Development Comes After Previous Crypto Investments
The creation of the blockchain is an additional phase in Stripe’s cryptocurrency strategy, which saw the firm pay $1.1 billion last October to acquire the stablecoin platform Bridge. Additionally, the company has investigated bank collaborations on stablecoins and expanded its Web3 capabilities by acquiring crypto wallet startup Privy.
Stripe will have more authority over the settlement and processing of transactions once it uses Tempo to create a specialised blockchain. This means that by handling everything in-house rather than depending on external networks, Stripe can expedite payments, save expenses, and improve security.
Control over this layer enables Stripe to streamline operations and personalise how transactions operate. Ultimately, this enables Stripe to provide quicker, more dependable payment services that better satisfy the demands of both customers and businesses.
Temp Blockchain’s Development Comes Amid a Rise in Stablecoin-Backed Blockchains
Stablecoin-based blockchains are catching on fast with their real-world utility. Most investors have defined these blockchains as digital money that feels a lot more like the cash we use every day. Unlike other cryptocurrencies that can be super unpredictable, stablecoins stick close to real money like the US dollar, so you don’t have to worry about wild price swings.
Market participants pivot towards stablecoin-backed Blockchains to send money across countries quickly and without big fees. They’re also great for decentralized finance (DeFi), where you can lend or borrow money without the usual ups and downs. Plus, they work well with smart contracts, powering all sorts of cool apps on the blockchain.
As more people and businesses want simple, stable, and fast ways to pay and trade online, stablecoin blockchains are becoming the trusted choice for safer, smoother financial services globally.
