Stripe and Paradigm unveiled Tempo, a layer-1 blockchain designed for stablecoin funds.
A Sept. 4 announcement from Paradigm founder Matt Huang validates hypothesis that started when Stripe posted and shortly deleted blockchain engineering job listings in August.
Non-public testnet section
Tempo operates in a non-public testnet with choose companions testing cross-border payouts, B2B funds, and remittances.
In accordance with Huang’s announcement, the Ethereum Digital Machine (EVM)-compatible community targets high-volume fee use circumstances via devoted infrastructure selections, together with predictable low charges, funds in any stablecoin by way of a built-in automated market maker, and specialised person expertise options.
Tempo processes over 100,000 transactions per second with sub-second finality via a devoted funds lane that separates routine transactions from advanced good contract operations.
Design companions embody Anthropic, Coupang, Deutsche Financial institution, DoorDash, Lead Financial institution, Mercury, Nubank, OpenAI, Revolut, Shopify, Normal Chartered, and Visa.
The partnerships span conventional monetary establishments, neobanks, e-commerce platforms, and synthetic intelligence corporations.
Visa chief product and technique officer Jack Forestell acknowledged:
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“The long run is multi-chain: stablecoins will function throughout various blockchain networks and Visa is enabling interoperability between chains and stablecoin manufacturers.”
Stablecoin neutrality
Tempo incorporates stablecoin neutrality, permitting any entity to challenge stablecoins and use any stablecoin for funds or fuel charges. This construction contrasts with networks that favor particular stablecoin issuers or require native tokens for transaction charges.
The built-in automated market maker allows seamless conversion between completely different stablecoins. The community helps opt-in privateness transactions and consists of compliance hooks designed for regulatory necessities.
These options handle enterprise issues about transaction privateness whereas sustaining compatibility with anti-money laundering and know-your-customer rules.
The blockchain addresses real-world fee flows, together with international payouts, embedded monetary accounts, quick remittances, tokenized deposits for steady settlement, microtransactions, and automatic funds.
Constructed on Reth, Tempo maintains EVM compatibility whereas optimizing for payment-specific performance. Impartial entities, together with design companions, will function validator nodes earlier than transitioning to a permissionless mannequin.
Stripe joins Circle within the motion to launch a layer-1 community targeted on funds with stablecoins. On Aug. 12, Circle revealed Arc, a multi-chain infrastructure for stablecoin transactions.
Tempo positions itself as complementary to current general-purpose blockchains relatively than competing straight with established layer-1 networks.