The latest funding round for Tempo has achieved a remarkable valuation of $5 billion, positioning it as one of the most significant blockchain venture rounds in recent years. Notable investors in this round include Sequoia, Ribbit Capital, and Ron Conway’s SV Angel. However, it is worth mentioning that major players like Paradigm and Stripe did not contribute capital to this round.
The Tempo blockchain aims to revolutionize the financial landscape by focusing on stablecoins, backed by prominent design partners such as OpenAI, Shopify, and Visa. This strategic initiative is a strong indication that dollar-backed cryptocurrencies could emerge as a vital infrastructure layer for global payment systems.
The participation of Greenoaks and Thrive in leading this funding round is particularly noteworthy, as these generalist firms typically invest in mainstream sectors like AI and business-focused software. Their investment in Tempo signifies a growing acceptance of cryptocurrency in mainstream finance, further highlighting the industry's maturation.
With the backing of two top-tier venture capital firms, Tempo is poised to challenge established crypto-native stablecoin companies such as Circle and Tether, while also aiming to disrupt traditional payment giants like Mastercard.
While Stripe, Paradigm, Greenoaks, and SV Angel have declined to comment on the funding round, the broader context of Stripe's operations reflects a growing trend. In February, Stripe made headlines by acquiring the stablecoin startup Bridge for $1.1 billion. Additionally, in June, Stripe announced its intention to purchase the crypto wallet company Privy for an undisclosed amount.
Stripe is actively rolling out a suite of products related to stablecoins, including a feature called Open Issuance, which enables its customers to launch their own stablecoins. Furthermore, the cofounder and CEO of Bridge, Zach Abrams, revealed that his company has submitted an application for a national bank trust charter to comply with the recently enacted Genius Act, which establishes regulatory guidelines for stablecoin issuers.
Tempo stands out as Stripe's most ambitious project to date, as the company aims to compete with established blockchains like Ethereum and Solana that are already processing stablecoin transactions. The partnership with Paradigm, led by managing partner Matt Huang—who is also on Stripe's board—strengthens this initiative. However, the launch date for Tempo remains uncertain, and the company has not indicated whether it will introduce its own crypto token.
Importantly, Tempo has announced that it will remain stablecoin agnostic, allowing various tokens to be utilized for transaction fees, also known as “gas” fees.
Tempo is not alone in its quest to develop blockchain technology; major corporations are increasingly exploring this space. Since January, financial firms like Robinhood and the stablecoin leader Circle have unveiled plans to create their own blockchains. These forthcoming initiatives from Stripe and Robinhood illustrate a concerted effort to dominate every layer of the crypto technology stack, from the software that facilitates stablecoin transfers to the underlying servers that process these transactions.
The ongoing evolution of blockchain technology indicates a shift towards a more integrated and competitive landscape, where traditional finance and cryptocurrency are increasingly intertwined.
