Crypto infrastructure startup Commonware has raised $25 million in a funding spherical led by Tempo, a payments-focused blockchain community, underscoring a renewed effort to scale blockchain-based cost methods.
The deal, first reported by Fortune on Friday, is notable as a result of Tempo was launched in September by fintech large Stripe and crypto enterprise agency Paradigm. Commonware stated different traders participated within the spherical however declined to call them.
Commonware develops open-source software program that permits different corporations to construct and deploy their very own blockchains, supporting the rising ecosystem of payment-oriented Web3 infrastructure.
Commonware CEO informed Fortune that “utilization and distribution is far more essential than cash as a startup,” suggesting the corporate views its partnerships with Tempo and Paradigm as extra precious at this stage than conventional monetary metrics.
Tempo isn’t an bizarre backer. The corporate was just lately valued at $5 billion after a $500 million funding spherical led by Thrive Capital and Greenoaks. The layer-1 blockchain has drawn consideration for its give attention to stablecoins and real-world funds.
On the time, Stripe CEO Patrick Collison described Tempo as an “impartial firm, with Stripe and Paradigm as the primary traders.”
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Crypto funds achieve momentum as stablecoin adoption grows
Funds have lengthy been a core use case for blockchain expertise, however the sector is regaining momentum as stablecoin adoption accelerates. That pattern got here to the forefront on Friday when seven crypto corporations launched the Blockchain Funds Consortium, an initiative geared toward creating widespread requirements for crosschain stablecoin transactions.
“[F]or blockchain funds to succeed in full potential, we should tackle the inconsistent and fragmented experiences people and establishments face when transferring between conventional funds and blockchain,” the consortium stated.
In a associated improvement, the crypto media and pockets platform Bitcoin.com partnered with layer-1 blockchain Concordium to introduce age verification for stablecoin funds — a transfer the businesses say is in response to new security and compliance legal guidelines in numerous jurisdictions.
The stablecoin market has expanded quickly over the previous 12 months, and the latest passage of the US GENIUS Act — a key piece of stablecoin laws — is predicted to speed up that progress. In opposition to this backdrop, Citigroup has raised its market capitalization forecast for stablecoins to $4 trillion by 2030.
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