- Stripe’s blockchain project Tempo raised $500 million in a Series A funding round, valuing the network at $5 billion.
- The round was led by Greenoaks and Thrive Capital, with participation from Sequoia Capital, Ribbit Capital, and SV Angel.
- Neither Stripe nor Paradigm contributed new capital to the round.
- Tempo is described as a payments-focused blockchain designed to improve large-scale financial applications, especially for stablecoins.
- The project faces competition from other global stablecoin issuers like Circle and is entering a growing regulated market landscape.
Stripe’s blockchain initiative, Tempo, has completed a $500 million Series A funding round led by Greenoaks and Thrive Capital. This investment places Tempo at a $5 billion valuation, according to Fortune.
Major investors in the round include Sequoia Capital, Ribbit Capital, and SV Angel. Sources indicate that neither Stripe nor their partner venture firm, Paradigm, added extra capital in this round.
The announcement comes after Stripe revealed plans for a new layer-1 blockchain, developed in partnership with Paradigm. On September 4, Stripe CEO Patrick Collison said, “As the use of stablecoins (and crypto more broadly) grows across Stripe, Bridge, and Privy, we found that existing blockchains are not optimized for them.” He added, “We think of Tempo as the payments-oriented L1, optimized for high-scale, real-world financial applications.”
No official launch date for Tempo has been announced. Georgios Konstantopoulos, Paradigm’s CTO, said the team from Ithaca, known for open-source blockchain projects, will join Tempo to help scale payments infrastructure and engineering.
Tempo aims to create a blockchain optimized for payments, potentially competing with stablecoin providers like Circle, which issues the USDC stablecoin. USDC is backed 1:1 to the U.S. dollar and works with payment networks such as Mastercard and VISA. USDC’s current market cap is about $75.6 billion, making it second only to Tether’s USDT.
In August, Circle also announced plans to launch its own layer-1 blockchain for enterprise-grade stablecoin payments, capital markets, and foreign exchange. Recent momentum in the stablecoin industry follows the passage of the GENIUS Act in the U.S., establishing federal rules for stablecoin issuers. Stablecoins tied to the euro are also increasing in popularity as the European Union competes with U.S. dollar-denominated tokens.
For more background, see USDC market cap and Paypal-usd” rel=”nofollow noopener” title=”PYUSD market cap”>PYUSD market cap.
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