Summary:
Tempo, backed by Stripe and Paradigm, raised $500 million in Series A funding led by Greenoaks and Thrive Capital, valuing it at $5 billion.
The blockchain is designed for stablecoins with partners like OpenAI and Shopify, aiming to revolutionize global payments infrastructure.
This funding round includes participation from Sequoia, Ribbit Capital, and SV Angel, signaling crypto's entry into the mainstream.
Stripe's aggressive crypto strategy includes acquisitions like Bridge and Privy, and products such as Open Issuance for stablecoin creation.
Tempo challenges established blockchains like Ethereum and Solana, and competitors like Circle and Tether, while remaining stablecoin agnostic for transaction fees.
The Rise of Tempo: A Blockchain Powerhouse
As excitement around stablecoins surges from Silicon Valley to Wall Street, one of the most prominent new crypto projects has secured a massive war chest to fuel its ambitious goals. Tempo, a payments-focused blockchain developed by fintech giant Stripe and blockchain venture firm Paradigm, has raised $500 million in a Series A funding round. This round was led by venture giants Greenoaks and Joshua Kushner’s Thrive Capital, according to sources familiar with the deal.
The funding values Tempo at an impressive $5 billion, marking one of the highest-valued blockchain venture rounds in recent years. Other notable participants include Sequoia, Ribbit Capital, and Ron Conway’s SV Angel. Notably, Paradigm and Stripe did not contribute capital to this round.
Tempo's Vision for Stablecoins
The Tempo blockchain is designed with partners like OpenAI, Shopify, and Visa, primarily focusing on stablecoins. This initiative represents a bold bet that dollar-backed cryptocurrencies will become the new infrastructure layer for global payments.
Greenoaks and Thrive leading this round is significant, as these generalist firms typically invest in mainstream sectors like AI and business software. Their involvement signals that crypto has entered the mainstream. For Tempo, this backing will help it challenge established players such as Circle and Tether, and disrupt incumbents like Mastercard.
Stripe's Expanding Crypto Ambitions
Tempo is just the latest move in Stripe's growing crypto portfolio. Earlier this year, Stripe acquired stablecoin startup Bridge for $1.1 billion and announced plans to buy crypto wallet company Privy. Stripe has also launched products like Open Issuance, enabling customers to create their own stablecoins. Bridge's CEO, Zach Abrams, recently announced an application for a national bank trust charter under the Genius Act, new legislation regulating stablecoin issuers.
Tempo stands as Stripe's most ambitious project yet, aiming to compete with established blockchains like Ethereum and Solana in processing stablecoin transactions. Paradigm's managing partner, Matt Huang, who also sits on Stripe's board, is leading Tempo. The launch date remains unclear, and it's uncertain if Tempo will issue its own token. The company has stated it will remain stablecoin agnostic, allowing various tokens for transaction fees.
The Trend of Corporate Blockchains
Stripe isn't alone in this space. Since January, financial firms such as Robinhood and Circle have unveiled plans to launch their own blockchains. These efforts aim to control every layer of the crypto technology stack, from software for stablecoin transfers to the underlying servers processing transactions. Blockchains are networks of servers that handle crypto transactions, and these corporate initiatives highlight a push to dominate the infrastructure of digital payments.
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