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Stripe Enters Blockchain Race with Tempo, Supporting AI Agents and Stablecoins
Stripe has officially entered the race for next-generation stablecoin rails with the launch of Tempo, a new payments-first Layer 1 (L1) blockchain, developed in collaboration with Paradigm. The announcement positions Stripe alongside tech giants like Google in building innovative blockchain infrastructure.
Initially rumored to be an Ethereum [ETH] Layer 2 (L2) similar to Robinhood’s chain, Tempo will instead operate as a standalone network. It supports stablecoins for gas fees and is designed for autonomous AI agents, aiming to handle real-world financial applications at scale.
Optimized for Real-World Financial Services
Stripe CEO Patrick Collison described Tempo as “optimized for high-scale, real-world financial services applications.” Collison highlighted limitations of current blockchains, particularly low throughput and user experience issues, which make them less suitable for stablecoin-driven financial services. He emphasized the importance of fees denominated in fiat currency rather than blockchain-specific tokens for practical adoption.
Tempo is intended to facilitate a wide array of on-chain use cases, including payment acceptance, global payouts, remittances, microtransactions, tokenized deposits, and agentic payments, broadening the scope beyond traditional L2 solutions.
Implications for Ethereum L2s
The launch of Tempo has raised eyebrows in the crypto community. Tushar Jain, co-founder of Multicoin Capital, called it “the beginning of the end for L2s,” while investor Jon Charbonneau questioned the coherence of Ethereum as the “settlement layer for the internet of value.”
Meanwhile, Chuk Okpalugo, Product Lead at Paxos, noted that Tempo’s decentralized design, diverse partners, and Stripe’s distribution network make it a blockchain “to watch,” despite coordination challenges.
Market Reaction
Following the announcement, Ethereum sentiment dropped slightly, reflecting investor caution as new L1 competitors like Tempo prepare to go live in the coming months. The market will be closely watching how ETH holders and broader stablecoin ecosystems respond to this emerging infrastructure.
