Tempo, a payments-focused blockchain backed by Stripe and cryptocurrency investment firm Paradigm, has launched its public testnet, a key step in its effort to bring stablecoin payments into widespread use.
Tempo has also unveiled a list of new additions to the group of network partners, including buy now, pay later firm Klarna, prediction marketplace Kalshi, payments giant Mastercard and Swiss global bank UBS. They join a group of previous design partners such as Deutsche Bank, Visa, Shopify, OpenAI and Nubank.
Initially introduced in September, Tempo is designed to handle high-volume financial transactions with low fees, instant finality, and native support for stablecoins. Now that the testnet is live, developers and corporate partners can start experimenting with real-world on-chain payments.
The move fits into the latest trend of building blockchains for stablecoin payments as digital dollar adoption soars globally. Currently a $300 billion asset class, stablecoins are projected to become an integral part of cross-border payment pathways with business-to-business (B2B), peer-to-peer (P2P), and card payments driving growth, according to a recent report from Keyrock and Bitso.
Tempo aims to solve common problems in blockchain-based finance, such as network congestion and volatile transaction fees. The network charges about a tenth of a cent per transaction, payable in US dollar-denominated stablecoins and eliminating the need for a volatile gas token.
The news comes on the heels of Stripe’s stablecoin infrastructure company Bridge helping Klarna issue its own digital dollar next year.
Read more: Why Circle and Stripe (and many others) are launching their own blockchains
