Payments giant Stripe is developing a new layer-1 blockchain called Tempo in partnership with cryptocurrency investment firm Paradigm, according to reports from Fortune and BitcoinWorld. The Ethereum-compatible blockchain aims to optimize payment infrastructure by enabling faster settlements and reduced transaction costs.
Details emerged through a now-removed job posting dated August 3, revealing a five-person core team targeting Fortune 500 clients. The stealth project seeks to leverage Ethereum's programming language for seamless application portability. Matt Huang, Paradigm's co-founder and Stripe board member, provides a direct link between the companies, though neither has publicly confirmed the initiative.
The development follows Stripe's aggressive expansion into stablecoin infrastructure, including June's acquisition of wallet provider Privy and October 2024's $1.1 billion purchase of stablecoin infrastructure firm Bridge. By controlling the blockchain layer, Stripe could customize transaction fees, accelerate stablecoin settlements, and consolidate its payment stack from wallets to processing.
Industry observers note Tempo could bridge traditional finance and decentralized systems, potentially lowering cross-border payment fees and expanding financial accessibility. No timeline has been announced, and regulatory challenges remain unresolved.