--- title: "Stripe-Backed Tempo Raises $500M to Power the Future of Stablecoin Payments" date: 2025-10-17 author: "Kathleen Kinder" featured_image: "https://coinlaw.io/wp-content/uploads/2025/10/stripe-backed-tempo-raises-500m-for-stablecoin-payment-revolution.jpg" categories: - name: "Investments" url: "/investments.md" tags: - name: "News" url: "/tag/news.md" --- # Stripe-Backed Tempo Raises $500M to Power the Future of Stablecoin Payments Stripe-backed Tempo has raised $500 million in Series A funding, valuing the blockchain startup at $5 billion and positioning it as a major new player in the stablecoin payment space. ## Key Takeaways - Tempo raised $500 million in a Series A round led by Thrive Capital and Greenoaks, valuing the company at $5 billion. - The blockchain project is backed by Stripe and Paradigm, though they did not invest in the round. - Tempo is built as a Layer 1 blockchain optimized for high-speed, Ethereum-compatible stablecoin transactions. - High-profile design partners include OpenAI, Visa, Shopify, Anthropic, and Deutsche Bank. ## What Happened? Tempo, a blockchain startup incubated by **[Stripe](https://coinlaw.io/stripe-statistics/)** and **Paradigm**, has closed a $500 million Series A funding round. The round was led by **Thrive Capital** and **Greenoaks**, with participation from **Sequoia Capital**, **Ribbit Capital**, and **SV Angel**. Stripe and Paradigm did not participate in the funding, but remain deeply involved in the project’s development. > BREAKING: > > Stripe-incubated [@tempo](https://twitter.com/tempo?ref_src=twsrc%5Etfw) chain raises $500M on $5B valuation > > The same day Ethereum researcher Dankrad Feist announces joining the Tempo team > > Not a good day for going bankless [pic.twitter.com/5CWHXl907r](https://t.co/5CWHXl907r) > > — Bankless (@BanklessHQ) [October 17, 2025](https://twitter.com/BanklessHQ/status/1979221506753286535?ref_src=twsrc%5Etfw) ## Stripe’s Big Bet on Stablecoins Stripe’s long-running interest in digital finance has culminated in the creation of Tempo, a new Layer 1 blockchain network engineered for **real-world payments**. With compatibility for [Ethereum](https://coinlaw.io/ethereum-statistics/) and a focus on **stablecoins as native assets**, Tempo aims to challenge incumbent blockchains like **Ethereum** and **[Solana](https://coinlaw.io/solana-statistics/)**, while offering an alternative infrastructure layer to stablecoin giants **Tether** and **Circle**. Stripe’s CEO **Patrick Collison** previously described Tempo as “**the payments-oriented L1, optimized for real-world financial-services applications.**” Tempo is part of Stripe’s broader crypto strategy, which includes: - The **$1.1 billion acquisition of Bridge**, a stablecoin infrastructure provider. - The **purchase of Privy**, a crypto wallet provider. - **Integration with Coinbase’s Base Layer 2**, expanding Stripe’s crypto payment processing tools. ## High-Profile Support and Technical Ambition Tempo has attracted **industry-leading partners** including: - **[OpenAI](https://coinlaw.io/nvidia-openai-uk-data-center-investment/)** - **Shopify** - **[Visa](https://coinlaw.io/visa-statistics/)** - **Deutsche Bank** - **Anthropic** These design partners are working closely with Tempo during its development phase, contributing insights to ensure the platform can meet enterprise-grade financial needs. Tempo has also brought on **Dankrad Feist**, a senior researcher from the Ethereum Foundation, as a senior engineer. Feist said the project is “**built for the next era of on-chain financial services**” and praised its alignment with **Ethereum’s permissionless ideals**. ## Paradigm’s Vision and Role **Matt Huang**, co-founder of Paradigm and a board member at Stripe, is leading the Tempo initiative. Paradigm has been closely involved in shaping the blockchain’s roadmap, ensuring it remains **stablecoin agnostic** and **developer-friendly** while maintaining high performance and low transaction costs. The involvement of generalist investors like Thrive and Greenoaks, as well as legacy venture firms like Sequoia and Ribbit, signals growing investor confidence in **stablecoin infrastructure** as a foundational layer for the next wave of fintech innovation. ## CoinLaw’s Takeaway I think this is a **huge moment for blockchain payments**. Tempo isn’t just another crypto project trying to ride a hype wave. It has **real backing, real partners, and a clear mission**: to make stablecoin transactions faster, cheaper, and enterprise-ready. In my experience, projects with this level of alignment between big tech, finance, and infrastructure don’t come around often. Stripe’s play here is clear. They’re not dipping their toes into crypto anymore, they’re going all in. I found the support from OpenAI and Visa especially interesting, because it signals **serious real-world use cases** from day one. Definition of Blockchain. Link to full glossary entry follows the description.**Blockchain**A distributed digital ledger that records transactions across a network, with each block cryptographically linked to the previous one for security. [Read more](https://coinlaw.io/glossary/blockchain/) Definition of Layer 1. Link to full glossary entry follows the description.**Layer 1**A Layer 1 is the base [blockchain](https://coinlaw.io/glossary/blockchain/) layer that settles its own transactions, enforces its own consensus, and secures its own ledger. Bitcoin, Ethereum, Solana. [Read more](https://coinlaw.io/glossary/layer-1/) Definition of Cross-Chain. Link to full glossary entry follows the description.**Cross-Chain**Cross-chain is the ability to move data or assets between separate blockchains via bridges, messaging protocols, or interoperability networks. [Read more](https://coinlaw.io/glossary/cross-chain/) Definition of Layer 2. Link to full glossary entry follows the description.**Layer 2**A Layer 2 is a secondary [blockchain](https://coinlaw.io/glossary/blockchain/) built on top of Ethereum that bundles transactions off-chain and posts compressed data back to the main chain, cutting fees and raising throughput. [Read more](https://coinlaw.io/glossary/layer-2/) Definition of Stablecoin. Link to full glossary entry follows the description.**Stablecoin**A stablecoin is a cryptocurrency tied to a reserve asset like the US dollar, designed to maintain a stable value for trading, payments, and transfers. [Read more](https://coinlaw.io/glossary/stablecoin/)