Tempo is operating on a private test network where cross-border payouts, B2B payments, and remittances are being tested by selected partners. The Tempo layer-1 blockchain, designed for stablecoin payments, was unveiled by Stripe and Paradigm.
Speculation that began when Stripe published and swiftly removed blockchain engineering job listings in August was validated by a Sept. 4 announcement from Paradigm founder Matt Huang.
The Private Testnet: What’s Being Built Behind the Scenes
Tempo is operating on a private test network where cross-border payouts, B2B payments, and remittances are being tested by selected partners.
According to Huang’s announcement, high-volume payment use cases are targeted by the Ethereum Virtual Machine (EVM)-compatible network through specific infrastructure choices, including foreseeably low fees, payments in any stablecoin via a built-in automated market maker, and tailored user experience functionalities.
Over 100,000 transactions per second are processed by Tempo with sub-second finality. This is achieved through a specialized payments lane that separates routine transactions from complex smart contract operations.
The design partnership is comprised of a group that includes Anthropic, Coupang, Deutsche Bank, DoorDash, Lead Bank, Mercury, Nubank, OpenAI, Revolut, Shopify, Standard Chartered, and Visa.
The collaborations are comprised of a range of companies, including traditional financial institutions, neobanks, e-commerce platforms, and artificial intelligence firms.
“The future is multi-chain: stablecoins will operate across diverse blockchain networks and Visa is enabling interoperability between chains and stablecoin brands.”
Visa chief product and strategy officer Jack Forestell stated:
The Next Frontier for Payments: Building a Stablecoin-Neutral Network
Tempo’s stablecoin neutrality is integrated into its design, which allows any entity to issue stablecoins and use any stablecoin for payments or gas fees. This structure contrasts with networks that favor specific stablecoin issuers or require native tokens for transaction fees.
A smooth conversion between different stablecoins is enabled by the native automated market maker. Additionally, the network supports opt-in privacy transactions and features compliance hooks designed for regulatory requirements.
Enterprise concerns about transaction privacy are addressed by these functionalities, which simultaneously maintain compatibility with anti-money laundering and know-your-customer regulations.
Real-world payment flows are addressed by the blockchain. These include international payouts, integrated financial accounts, rapid remittances, tokenized deposits for continuous settlement, small-value transactions, and automated payments.
Tempo maintains EVM compatibility while prioritizing payment-specific functionality. Validator nodes will be operated by independent entities, including design partners, before the network transitions to a permissionless framework.
Stripe has aligned with Circle in the effort to launch a layer-1 network for stablecoin payments. On Aug. 12, Arc, a multi-chain infrastructure for stablecoin transactions, was revealed by Circle.
Tempo is positioned as a complement to existing general-purpose blockchains, rather than as a direct competitor to established layer-1 networks.
