Stripe and crypto investor Paradigm have announced Tempo, a layer‑1 blockchain purpose-built for stablecoins and payments. The EVM-compatible network is being designed with input from OpenAI, Visa and Shopify and is currently operating in a private testnet.
Tempo is engineered for throughput and low cost: the team targets over 100,000 transactions per second (TPS), aims for very low fees and includes privacy controls that let users conceal selected transaction details. The protocol also uses an automated market maker (AMM) so transaction fees can be paid in any stablecoin, letting businesses accept and settle in their preferred dollar‑pegged token.
Early trials focus on real-world flows such as e‑commerce payments, cross‑border remittances, on‑chain payroll and high-volume microtransactions. Several design partners are already serving as validators during the private testnet phase, with a roadmap to move to a fully open, permissionless validator set over time.
Stripe — which has incubated Tempo alongside Paradigm — says existing chains are not optimized for mainstream stablecoin payments. The company has been building out crypto infrastructure through moves like acquiring Privy and the stablecoin payments platform Bridge. Tempo enters a growing field of payments-focused blockchain work alongside initiatives from firms such as Google, Circle and Fireblocks.
Why it matters: a payments-optimized layer‑1 could reduce cost and friction for businesses bringing fiat flows on‑chain. Risk considerations: Tempo is in private testnet with a limited validator set today, raising short-term centralization and operational risks. Broader adoption also depends on stablecoin issuer stability and regulatory clarity across jurisdictions.
Source: Decrypt. Read the original coverage for full details.