Stripe, the globally recognized fintech giant, is making a decisive leap into the cryptocurrency sector. Though PayPal has shown more activity in this realm, Stripe is now catching up through strategic acquisitions and initiatives that signal its keen interest in cryptocurrency ventures.
What is Stripe’s Cryptocurrency Network?
A recent job listing on the Blockchain Association’s website unveils Stripe’s latest endeavor: a new cryptocurrency network, known as Tempo. This blockchain is tailored for high-speed payment processing and is currently under wraps with a small team of five working on it. Paradigm, a major venture capital player in the crypto space, is collaborating on this project.
How Advanced is the Network ?
Insider sources, as accessed by Fortune, shed more light on the venture, discussing the creation of an EVM-compatible layer-1 blockchain. Distinctly standalone, this blockchain isn’t based on existing crypto protocols but has the capability of executing Ethereum smart contracts.
Earlier this year, Stripe made significant acquisitions, including Bridge, a stablecoin firm for $1.1 billion, and Privy, a crypto wallet developer. These purchases reflect Stripe’s growing interest and commitment to expanding its stablecoin-related activities.
The integration of these assets positions Stripe as a formidable player in cryptocurrency payments. The potential EVM compatibility of their network could allow ERC-20 token payments, broadening its utility.
“Fusing our payment expertise with cutting-edge blockchain technology allows us to push boundaries in the digital finance sector,” said a Stripe spokesperson.
Key takeaways from Stripe’s venture into crypto reveal several insights:
- Development of a proprietary EVM-compatible blockchain called Tempo.
- Strategic partnerships with leading crypto firms like Paradigm.
- Potential to enable 4.5 million websites to accept cryptocurrency.
- Enhanced capacity for ERC-20 token payment processing.
Stripe is poised to reshape the cryptocurrency market with its innovative projects. The swift pace at which Stripe is advancing could redefine how digital payments are processed in the near future.
