Author: Zz, ChainCatcher
In August 2025, a job posting briefly published on the website of the crypto lobbying group 'Blockchain Association' first disclosed that fintech giant Stripe is collaborating with crypto VC firm Paradigm to develop a high-performance L1 (Layer 1) blockchain project called 'Tempo'.
According to Cryptopolitan, this job posting was deleted shortly after being published, but the related information still indicates that Stripe is preparing its independent blockchain infrastructure.
Project technology and positioning
According to disclosed information, Tempo's positioning is very clear: an independent L1 blockchain designed specifically for enterprise-level payment scenarios, rather than a general-purpose smart contract platform.
Its target users are not crypto-native traders but CFOs (Chief Financial Officers) or treasury management departments of large multinational companies. Job postings indicate that candidates need to have 'marketing experience targeting Fortune 500 audiences', suggesting that Tempo's target users are the financial decision-makers of large multinational corporations. This means the project focuses not only on technical performance but also emphasizes meeting the needs for enterprise payment efficiency and cost control. It aims to address the pain points of traditional cross-border payments. Currently, this field is still dominated by the SWIFT system— the messaging network for transmitting payment instructions between global banks. Due to reliance on multiple intermediary banks, this system has long faced issues of long processing times, high costs, and lack of transparency.
Technically, Tempo pursues 'high performance'. According to job postings and industry analysis, its technical goals include increasing transaction throughput (TPS, i.e., transactions per second) and achieving fast finality (Time to Finality, TTF) to meet enterprise-level payment requirements for settlement speed and certainty.
The emergence of Tempo means it will directly compete with the L1 public chain 'Arc' launched by stablecoin issuer Circle. Both are targeting the enterprise payment market, indicating that competition in the stablecoin settlement layer is shifting from the application layer to the infrastructure layer.
Strategic choice: Why did Stripe build L1 from scratch instead of using L2
Stripe is built on a large merchant base and rich experience. Its exploration in the crypto field has undergone a clear evolution from cautious experimentation to decisive action. After initially giving up due to Bitcoin's volatility and inefficiency, Stripe has deeply recognized that innovating payments must involve mastering more fundamental technologies.
Stripe's choice to build its own L1 is to control the transaction settlement network, fee models, and compliance pathways.
Choosing L2 means establishing the business's lifeline on another network. While it can open quickly, it must bear multiple risks from the underlying network: the unpredictability of the fee market—Ethereum gas fees soaring will lead to uncontrolled payment costs; dependencies on governance and technical paths—any upgrade disputes of the underlying L1 may affect L2; performance bottlenecks—the performance ceiling of L2 is constrained by L1.
By building its own L1, Stripe transforms from a 'tenant' to a 'landlord', gaining sovereignty to define rules.
At the same time, Tempo is the last piece of the puzzle in Stripe's full-stack layout. Previously, Stripe has embarked on a series of acquisitions:
Application Layer: According to The Block, in October last year, Stripe acquired stablecoin infrastructure company Bridge for $1.1 billion, gaining control over the APIs for stablecoin issuance and management.
User Layer: In June this year, acquired wallet infrastructure provider Privy, whose core value lies in simplifying the user onboarding process into the web3 world.
Settlement Layer: Completes the most fundamental transaction settlement network through Tempo.
The intention of this layout is for Stripe to transform from a 'channel dealer' to a 'platform owner' with a complete track. This is crucial for serving large enterprises and financial institutions.
The co-builder role played by Paradigm
Paradigm is not only an investor in this collaboration but also a deep 'co-builder'. Its co-founder Matt Huang serves on the board of Stripe, responsible for guiding its crypto strategy. This close relationship ensures that Paradigm's cutting-edge ideas in underlying protocol design can be directly injected into Tempo.
Tempo's design philosophy seems to be practicing the ideas proposed by Paradigm in the article published on June 20 (The L1 Dilemma), which states that a new L1 can succeed by leveraging and challenging the 'dogma' of existing L1s. The Tempo project may be a textbook practice of this theory:
Native Token: Tempo may not issue speculative native tokens, with transaction fees paid directly in stablecoins, thus avoiding regulatory risks and focusing on the payment utility of the network. This is a complete subversion of the standard L1 economic model.
Validator Network: Tempo may adopt a validator network composed of licensed entities to ensure the stability and compliance required by enterprise clients.
EVM Compatible: Reports suggest that Tempo will be compatible with the Ethereum Virtual Machine (EVM) to lower the barriers for developers and leverage the existing developer ecosystem.
Advantages and challenges
According to current intelligence analysis, Tempo's biggest advantage lies in relying on Stripe's existing vast merchant network, which solves the 'cold start problem' faced by new blockchains. Stripe can smoothly guide its existing customers to the Tempo network, forming a network effect.
The main challenge comes from direct competition with Circle. The technical paths of both may converge, with the key to victory depending on market entry strategies and distribution capabilities. Circle's advantage lies in its integration of the native USDC and deep relationships in the crypto industry, while Tempo's advantage is provided by its existing Web2 enterprise customer network for promotion.
Final thoughts: The signal conveyed by Web2 giants entering the market
Stripe's move to build its own L1 marks a deepening integration of Web2 giants and blockchain technology. It also resembles a strategy following the passage of the GENIUS Act. Stripe is personally getting involved, as it is laying out compliance for stablecoin infrastructure, which may convey several signals:
Firstly, the market's value narrative may partially shift from 'pure decentralization' to 'compliant asset flows'. The core of Tempo is to provide a secure and efficient carrying network for stablecoins.
Secondly, the public chain track may experience 'diversion'. The future market may be divided into two categories: one represented by Ethereum, which is 'permissionless chains' open and crypto-native; the other represented by Tempo, which serves regulated commercial activities as an 'enterprise-specific chain'.
Finally, investment opportunities may focus on the infrastructure of the 'compliant stablecoin ecosystem'. Stripe's layout indicates that with the implementation of the GENIUS Act, projects that can provide critical technologies for stablecoins (such as compliant issuance, transaction monitoring, wallet security, asset management) may become value-laden.
(This article is for reference only and does not constitute investment advice)