Stripe and Paradigm Redefine Payments with Stablecoin-Optimized Blockchain

Stripe’s CEO Patrick Collison has underscored the rising demand for stablecoins as a solution for businesses seeking faster, more cost-effective payment systems. According to Collison, this shift is prompting fintech firms to adopt blockchain infrastructure tailored to stablecoin transactions, which are pegged to stable assets like the U.S. dollar and thus less volatile than other cryptocurrencies. In response, Stripe and Paradigm have launched Tempo, a blockchain purpose-built for high-throughput stablecoin processing, designed to support a wide range of financial use cases including remittances, payroll, microtransactions, and tokenized deposits for 24/7 settlement [3].

Tempo, announced in late August, is the result of a collaboration between Stripe’s global payments expertise and Paradigm’s deep involvement in blockchain innovation. It aims to address the limitations of existing blockchain platforms, which, while optimized for trading, fall short in handling the scale and speed required for enterprise-grade payment systems. Stripe’s acquisition of Bridge, a stablecoin company, in recent years, aligns with its broader strategy to integrate stablecoins into mainstream financial infrastructure [4]. Tempo is intended to process tens of thousands of transactions per second with near-instant finality, enabling seamless cross-border transactions and reducing reliance on traditional banking rails [3].

The blockchain’s development has already attracted major industry players, including Anthropic, OpenAI, Deutsche Bank, Nubank, Visa, and Shopify, all of whom are providing design input to shape its architecture. This collaboration reflects the growing consensus among financial and tech firms that stablecoins can streamline global payments by reducing latency and cost [3]. Stripe board member and Paradigm co-founder Matt Huang, who will lead Tempo as CEO, emphasized the project’s focus on decentralization and neutrality. The blockchain will be Ethereum Virtual Machine (EVM)-compatible and built on Reth, an Ethereum execution client, ensuring compatibility with existing smart contract ecosystems [3].

Collison noted that Tempo is part of a broader trend of stablecoin-focused blockchain projects emerging as the market grows. Stablecoins, currently a $270 billion asset class, are projected to reach a trillion-dollar valuation in the coming years [3]. With the U.S. regulatory environment shifting in favor of blockchain innovation—including a recent congressional bill addressing stablecoin oversight—businesses are increasingly open to exploring on-chain solutions. Stripe’s involvement in Tempo signals its confidence in the future of stablecoins as a core component of global financial infrastructure [4].

While Tempo does not intend to launch with its own native token, it will allow stablecoins to be used for gas fees—transaction charges paid to blockchain validators—offering a departure from traditional blockchain models. This design choice reflects Stripe’s and Paradigm’s commitment to creating a payment-centric infrastructure that is accessible and practical for businesses. The project is currently in private test mode, with plans to transition to a permissionless model in the future [3]. As the race to develop payment-focused blockchains intensifies, Tempo positions itself as a neutral, scalable solution that could redefine how enterprises handle real-time financial transactions.

Source:

[1] Tempo: The Blockchain Designed for Payments - Paradigm.xyz (https://www.paradigm.xyz/2025/09/tempo-payments-first-blockchain)

[2] Stripe enlists a who's who, including Anthropic, OpenAI, and Paradigm to build a new blockchain (https://techcrunch.com/2025/09/04/stripe-enlists-a-whos-who-including-anthropic-openai-and-paradigm-to-build-a-new-blockchain/)

[3] Stablecoin News: Stripe, Paradigm Unveils Payments ... (https://www.coindesk.com/business/2025/09/04/stripe-paradigm-unveil-tempo-as-blockchain-race-for-high-speed-stablecoin-payments-heats-up)

[4] Stripe and Paradigm announce new payments-focused ... (https://fortune.com/crypto/2025/09/04/stripe-paradigm-tempo-blockchain-stablecoins-matt-huang-payments/)