Stripe and Paradigm have moved their blockchain project, Tempo, into public testing, marking a significant step after months of private development.
The network is designed for stablecoin payments and aims to appeal to firms that require predictable settlement and lower transfer costs.
Early testing has already attracted involvement from established institutions, including Mastercard, UBS and Klarna, along with participation from technology firms such as OpenAI and Shopify.
With stablecoin use rising sharply across global payments, Tempo’s expansion places Stripe in a growing field of companies attempting to reshape financial infrastructure through tokenised money.
Public Testnet Launch Marks Stripe’s Most Ambitious Move
Tempo entered the public arena this week with the release of its open source testnet. Anyone can now run a node, sync the chain and inspect the system that Stripe and Paradigm have been building since its announcement in September.
The launch is part of a wider effort to involve institutions, developers and financial partners in shaping the network before its eventual mainnet release.
The news extends beyond a typical testnet milestone. Stripe has historically played a major role in online payments, yet this is the company’s most direct move into blockchain-based systems.
Tempo’s development process has included contributions from companies handling international transfers, banks testing tokenised deposits and artificial intelligence firms exploring automated financial workflows.
Statements shared by design partners describe the collaboration as a chance to evaluate the future structure of payment networks in a live environment.
Mastercard and UBS are among the most recent additions to the programme. Their presence signals that Tempo is being examined not only by fintech companies but also by established financial institutions with large user bases.
Klarna has taken an even more active role, preparing to launch KlarnaUSD, a stablecoin that will be issued natively on Tempo. The company cited the potential for cost reductions in cross-border payments as a key reason for testing the network.
The financial scale surrounding Tempo has increased rapidly. In October, the project raised $500 million at a valuation of $5 billion.
The round included participation from several major venture firms, indicating that investors see potential in a payments-focused blockchain that aims to serve stablecoin transactions at scale.
As global firms search for ways to reduce settlement delays and transfer fees, Tempo has become one of the most closely followed networks to emerge this year.
Current Development Focus: Payments Infrastructure, Testnet Tools, and Stablecoin Experiments
The public testnet provides the clearest picture yet of how Tempo intends to function. The network is compatible with the Ethereum Virtual Machine, making it easier for developers familiar with existing tools to build applications.
Tempo has been structured around predictable settlement and stable fees, qualities that many financial firms prioritise but often struggle to maintain on general-purpose blockchains.
One of the network’s central features is the presence of dedicated payment lanes. These lanes reserve space for transactions and prevent sudden cost increases during busy periods.
For companies processing large numbers of payments, predictable fees are often more important than raw throughput. Tempo reinforces this approach further by allowing fees to be paid directly in stablecoins, avoiding the need for a separate volatile asset.
Deterministic finality is another key element. Blocks finalise roughly every 0.5 seconds, ensuring that once a transaction is confirmed, it will remain part of the chain. This speed allows developers to test payment applications that depend on immediate settlement.
The network also includes a built-in decentralised exchange designed for stable assets and tokenised deposits, giving participants the ability to simulate real payment flows and liquidity movements.
The validator set remains small for now. Four validators operated by Tempo currently maintain the network.
According to the development team, this structure will expand as more partners join and as Tempo moves closer to mainnet. The software is fully open source under the Apache licence, enabling independent developers to run nodes without restriction.
Stablecoin experimentation has become a major part of the testnet phase. Tempo’s TIP 20 token standard allows users to create stablecoins directly through a browser environment. Although the final collateral requirements for mainnet versions have not been confirmed, the tool demonstrates how issuers may eventually deploy digital money on the network. This approach appeals to fintech companies exploring tokenised payment flows, including Klarna, which has become the first bank to issue a stablecoin on Tempo.
The steady increase in stablecoin use is a major factor behind Tempo’s development. According to recent data, the market capitalisation of stablecoins has risen from $180 billion in late 2024 to $308 billion today.
Stripe is entering a sector already served by networks such as Solana, Tron, several Ethereum L2s and BNB Chain.
Each of these ecosystems already supports high-volume stablecoin transfers. As a result, analysts note that Tempo’s challenge is not to compete directly with these chains but to prove that a payments-focused network can create tangible advantages for businesses that depend on predictable settlement.
Tempo’s next stage will involve scaling tests, onboarding more infrastructure partners and expanding its developer tools. A final date for the mainnet launch has not been set, but the team has indicated that 2026 is the current target.
As financial firms continue to experiment with tokenised money, Tempo will be watched closely for signs that it can support high-frequency payments reliably and at scale.
Conclusion
Tempo’s public testnet represents the most significant step in Stripe’s move toward blockchain-based payments.
The involvement of major institutions, combined with a focus on stablecoin usability and predictable settlement, places the network in a strong position for further evaluation.
At the same time, it enters a landscape already populated with efficient and well-adopted payment chains. Tempo’s progress will depend on whether its dedicated design and institutional partnerships can translate into genuine long-term adoption.
As the testnet evolves, its performance will shape expectations ahead of the planned mainnet launch in 2026.