What Bear Market? Stripe-Backed Tempo Raises $500M for Stablecoin Venture

Tempo, a layer-1 blockchain created by Stripe and Paradigm, has raised $500 million in a Series A funding round. This gives the company a valuation of $5 billion. The company aims to change how people make global payments using its platform, which focuses on stablecoins.

The funding round, which took place on October 17, 2025, was spearheaded by Thrive Capital and Greenoaks, with participation from notable investors including Sequoia.

Stablecoins Venture Attracts a Boost

Stablecoins like USDC and USDT are tied to the dollar, making them a reliable option in the unpredictable world of cryptocurrencies like Bitcoin, which has dropped in value recently. In the third quarter of 2025, daily transaction volumes for stablecoins surpassed $270 billion.

These coins are becoming more popular, especially in countries facing high inflation, such as Argentina and Turkey. Tempo plans to take advantage of this growing demand by using its platform to improve global payments with speed and efficiency.

Built to process over 100,000 transactions per second with sub-second finality, Tempo’s blockchain could change traditional financial systems. Its seamless integration with Ethereum ensures low-cost stablecoin transactions without requiring a native token. 

Enhanced by Stripe’s recent acquisition of Bridge for smooth fiat-to-crypto on/off-ramps and user-friendly wallet technology from Privy, Tempo is poised for mass adoption. High-profile partnerships with OpenAI, Shopify, and Visa further cement its mission to bridge digital assets and traditional finance.

Investor Confidence Defies Market Trends

Despite a decline in venture funding since 2024, Tempo’s significant fundraising shows that stablecoins are becoming more attractive. Companies like Circle are gaining higher valuations, and Tether is pushing forward with new stablecoin developments. This shows that institutions are strongly supporting these digital dollars. 

Meanwhile, adding to its momentum, Tempo has recruited Dankrad Feist, a prominent Ethereum developer, from the Ethereum Foundation. Feist, renowned for co-creating the Danksharding design to boost Layer 2 scalability, joined the Foundation in 2018 and rose to the position of strategic advisor, focusing on Layer 1 scaling and user experience. 

His move to Tempo underscores the project’s growing influence in the blockchain ecosystem. As economic uncertainty fuels demand, Tempo is well-positioned to lead the charge, blending cutting-edge technology with real-world financial applications.

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