Institutional Capital Floods into Ethereum, ETH ETFs Smash Records

Ether (ETH) surged as infrastructure giants like Circle, Visa, and Stripe deepen their commitments to blockchain technology. The asset soared as major spot ether ETFs absorbed over $1B in a single day, with BlackRock's ETHA fund leading the way. Circle reported a 53% yearly revenue increase and announced its own enterprise-grade Layer-1 blockchain, "Arc," later this year. Visa is expanding its stablecoin settlement services, and Stripe is building a payments-focused Layer-1 blockchain called "Tempo."

In a significant development in the blockchain and fintech sectors, Stripe is quietly building a new payments-focused Layer-1 blockchain called Tempo, developed in partnership with venture capital firm Paradigm. This initiative, which aims to redefine global transaction speed and cost predictability, follows a series of strategic moves by Stripe to expand its stablecoin capabilities and deepen its integration into the blockchain ecosystem.

Tempo is described as a high-performance Layer-1 blockchain compatible with Ethereum's programming language, allowing developers to port applications with minimal friction. The project is being developed by a small team of five individuals, with a focus on enterprise-level commerce, cross-border payments, and e-commerce [1]. The initiative underscores Stripe's commitment to infrastructure interoperability and developer accessibility without a native token, emphasizing the importance of Ethereum compatibility [2].

The development of Tempo builds on Stripe's recent expansion into stablecoin infrastructure. The company acquired wallet provider Privy in June and Bridge, a stablecoin infrastructure company, in October 2024. These acquisitions have expanded Stripe's stablecoin and wallet capabilities, paving the way for Tempo to optimize stablecoin settlement speed, lessen dependency on external networks, and customize transaction costs for business clients [3].

The collaboration between Stripe and Paradigm is strategic and synergistic. Paradigm's co-founder and managing partner, Matt Huang, sits on Stripe's board, providing a direct link between the payments giant and the crypto investment firm. This connection highlights a synergy between fintech and blockchain innovation, potentially enabling Tempo to incorporate advanced scalability and security features [3].

Tempo's strategic timing aligns with a more favorable regulatory environment following the passage of the GENIUS Act in July 2025. This development could encourage institutional adoption of stablecoin-based payment systems, further supporting Tempo's ambitions. Stripe is reportedly preparing to market the platform to Fortune 500 companies, indicating a targeted approach to institutional adoption and large-scale enterprise engagement [1].

Stripe's extensive network of millions of merchants positions it well to drive rapid adoption of Tempo. The company is reportedly planning a strategic launch, emphasizing controlled deployment and enterprise-focused marketing. The initiative reflects Stripe's broader ambition to integrate blockchain technology into its core payment infrastructure, reinforcing its leadership in digital payments and decentralized finance [10].

In summary, Stripe and Paradigm's Tempo blockchain project represents a significant step forward in the integration of blockchain technology into the payments ecosystem. By focusing on high-speed transaction settlement and predictable fees, Tempo has the potential to challenge traditional payment systems and offer a compelling alternative to existing providers.

References:
[1] https://fortune.com/crypto/2025/08/11/stripe-blockchain-tempo-paradigm/
[2] https://finance.yahoo.com/news/exclusive-fintech-giant-stripe-building-204320207.html
[3] https://news.bitcoin.com/stripe-quietly-building-tempo-blockchain-with-paradigms-backing-report/
[10] https://crypto.news/stripe-layer-1-payments-blockchain-paradigm-2025/