Stripe, in partnership with Paradigm, has launched a new blockchain project called Tempo, which is designed specifically for high-speed stablecoin payments. CEO Patrick Collison announced that Questa initiative is currently in private test mode and is focused on providing solutions for global payouts, microtransactions, remittances, and AI-driven payments.
Tempo aims to tackle the demands seen in real-world financial applications by processing tens of thousands of transactions per second with sub-second finality. Some notable partners involved from the beginning include Anthropic, Deutsche Bank, DoorDash, Nubank, OpenAI, Revolut, Shopify, Standard Chartered, and Visa. These companies will help shape the blockchain’s design and functionality.
As a growing number of blockchain projects compete in the stablecoin space, Tempo is strategically positioned to capitalize on a lucrative market opportunity. The stablecoin market currently stands at around $270 billion and is projected to reach $1 trillion, presenting a significant threat to traditional banking systems with its potential for faster and cheaper transactions.
Collison emphasized the necessity of Tempo due to existing blockchains falling short of Stripe’s required throughput and payment capabilities. Tempo targets 100,000 transactions per second, allows fees to be paid in stablecoins rather than native tokens, and includes a built-in automated market maker to enhance neutrality among issuers. The blockchain is EVM-compatible and built on Reth, an Ethereum execution client.
Furthermore, Tempo operates as an independent entity with Paradigm and Stripe as early investors. Paradigm CEO Matt Huang noted that the development of Tempo is guided by principles of decentralization and neutrality, with plans for a permissionless model in the future.
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