Stripe's Tempo Blockchain Initiates Private Testing with Major Financial Institutions

Stripe has launched Tempo, a payments-focused Layer 1 blockchain, and commenced private testing with financial giants Visa, Deutsche Bank, and Standard Chartered, aiming for 100,000+ transactions per second for stablecoin payments.

U.S. financial technology leader Stripe has commenced private testing of its new payments-focused Layer 1 blockchain, Tempo, engaging major global financial institutions including Visa, Deutsche Bank, and Standard Chartered. This strategic move positions Stripe at the forefront of high-throughput stablecoin transactions, signaling a significant evolution in global payment infrastructure. The initiative aims to enhance the efficiency and accessibility of digital payments across various industries.

The Event in Detail

Tempo, incubated by Stripe in collaboration with crypto venture capital firm Paradigm, is engineered to address the scalability challenges inherent in existing blockchain solutions. The platform targets a remarkable processing capacity of over 100,000 transactions per second (TPS) with sub-second finality. This performance benchmark significantly surpasses current blockchain capabilities, for instance, Bitcoin typically processes approximately 5 TPS, and Ethereum handles around 20 TPS, highlighting Tempo's design for high-volume demands.

A key feature distinguishing Tempo is its stablecoin neutrality, which allows transaction fees to be paid in any stablecoin through an enshrined automated market maker (AMM). This eliminates the need for volatile native tokens for gas fees, providing predictable, fiat-denominated costs that are crucial for institutional adoption. Built by forking Ethereum's Reth client, Tempo maintains full Ethereum Virtual Machine (EVM) compatibility, enabling developers to leverage existing tools and frameworks. The platform also incorporates dedicated lanes for payments, support for memos and access lists, and opt-in privacy settings.

Beyond Visa, Deutsche Bank, and Standard Chartered, other prominent design partners participating in the private testnet phase include e-commerce giant Shopify, and AI firms Anthropic and OpenAI, exploring use cases for tokenized microtransactions. Companies like DoorDash, Revolut, Nubank, Coupang, Lead Bank, and Mercury are also involved, testing various real-world financial applications such as cross-border payouts and B2B payments.

Analysis of Market Reaction

The launch of Tempo and its immediate adoption by a diverse group of global enterprises underscore a bullish sentiment for companies driving innovation in digital payments and blockchain technology. This development poses a direct challenge to traditional payment rails, urging them to accelerate their own modernization efforts. For participating financial institutions and businesses, Tempo offers the potential for significantly increased transaction efficiency, reduced costs, and faster settlement times, particularly for cross-border remittances and payroll.

Stripe's strategic entry into blockchain infrastructure through Tempo solidifies its position as a critical provider in the evolving digital payments landscape. The emphasis on real-world financial applications, rather than speculative trading, aims to bridge the gap between traditional finance and the burgeoning digital asset ecosystem. The robust industry participation signals strong institutional confidence and a strategic move by Stripe to capitalize on the inefficiencies of existing payment networks.

Broader Context and Implications

Tempo enters a stablecoin market poised for substantial growth. Projections indicate the global payment infrastructure market, heavily influenced by stablecoins, could expand from an estimated $2 trillion in 2025 to $4 trillion by 2035. The stablecoin market itself has seen a rapid expansion, with circulation surging 90% year-over-year to $65.2 billion, and daily transaction volumes consistently ranging between $20 billion and $30 billion.

The regulatory landscape is also becoming more accommodating, further spurring institutional interest. The passage of the U.S. GENIUS Act in July 2025, which provides a framework for stablecoin innovation, is particularly significant. This, combined with other tightening global regulatory oversight from bodies like the Markets in Crypto-Assets (MiCA) in Europe, the Financial Action Task Force (FATF), and the Basel Committee's capital rules, indicates a maturation of the crypto market, fostering greater clarity and reducing regulatory risk for institutional players.

This initiative builds on Stripe's prior strategic investments in the cryptocurrency space, including its acquisition of stablecoin infrastructure firm Bridge in late 2024 and crypto wallet firm Privy in mid-2025. Stripe's substantial financial scale, having processed $1.4 trillion in total payment volume in 2024, positions Tempo to significantly impact the Web3 ecosystem and corporate finance.

Looking Ahead

The successful progression of Tempo through its private testnet phase will be a critical indicator of its broader market readiness. The long-term trajectory includes a planned transition from a curated testnet to a permissionless model, which could attract a wider array of developers and enterprises seeking scalable infrastructure. Key factors to monitor in the coming months include continued enterprise adoption, the expansion of its real-world use cases, and how it navigates the competitive landscape, which includes other emerging projects like Google's GCUL and Circle's Arc. Tempo has the potential to become a foundational element of future global payment infrastructure, redefining how businesses and consumers interact with digital currency.

source:

[1] Stripe's Tempo Begins Private Testing with Financial Giants Visa, Deutsche Bank, Standard Chartered[2] Tempo: The Game-Changer in the High-Speed Stablecoin Payments Race - AInvest[3] Stripe and Paradigm incubate Tempo blockchain for stablecoin payments - Blockworks

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Technology Sector Propels Market Gains Amid AI-Driven Rally; Oracle Shares Fluctuate Post-Earnings

The current market rally is predominantly driven by the artificial intelligence sector, showcasing significant gains in chipmakers and AI infrastructure companies. This rally is underpinned by strong earnings and robust demand, distinguishing it from the speculative fervor of the dot-com bubble. While Oracle experienced a post-earnings fluctuation, the broader market is witnessing a resurgence in IPO activity. Concerns about a narrow market breadth persist, with a few dominant technology firms accounting for a substantial portion of overall index gains. Opening U.S. equities have demonstrated a pronounced divergence through the first half of 2025, with the technology sector, particularly companies deeply entrenched in artificial intelligence (AI), spearheading significant market gains. This specialized rally is fueled by strong corporate earnings and an escalating demand for AI infrastructure, establishing a distinct narrative for current market performance. The Event in Detail The market's momentum is largely concentrated in chipmakers and companies providing AI infrastructure. Nvidia Corp. (NVDA) has seen its stock climb over 13% this year, pushing its market capitalization close to $4 trillion, surpassing the gross domestic product of some nations. Other significant advancers include Palantir Technologies Inc. (PLTR), up over 83%, alongside strong performances from Broadcom Inc. (AVGO), Super Micro Computer Inc. (SMCI), and Arm Holdings Plc (ARM). Nvidia's first-quarter earnings report highlighted a 73% year-over-year increase in data center revenue, underscoring the robust demand driving this sector. Oracle Corp. (ORCL) shares experienced notable volatility, slipping 6.2% after a prior 36% surge. This initial surge, which marked Oracle's best trading day since 1992, followed a "blowout earnings report" propelled by multibillion-dollar orders for its cloud services. The company's backlog reportedly ballooned, with analysts from Deutsche Bank commending the "truly awesome results" and affirming Oracle's position as a "leader in AI infrastructure." Despite the recent dip, ORCL remains up approximately 90% since the start of the year. The extraordinary performance of Oracle shares briefly propelled co-founder Larry Ellison past Elon Musk as the world's richest person, with Bloomberg estimating his net worth at $393 billion. This shift underscores the immense wealth generation occurring within the AI-driven technology landscape. Simultaneously, the global Initial Public Offering (IPO) market is undergoing a significant resurgence in 2024 and the first half of 2025. IPO proceeds increased by 17% compared to the previous year, reaching $61.4 billion from 539 deals. The U.S. market alone witnessed 165 IPOs, a 76% increase. This renewed activity is attributed to stabilizing inflation, plateauing interest rates, and strong stock valuations, with Technology, Media, and Telecommunications (TMT) companies, especially those focused on AI, leading the charge. Analysis of Market Reaction The current market rally is not merely speculative but is underpinned by "hard data, strong earnings" and a laser focus on AI infrastructure. This analytical rigor differentiates the present environment from the dot-com bubble of the late 1990s. Economists and strategists note that today's technology giants exhibit significantly higher earnings growth and lower valuation multiples compared to their predecessors during the dot-com era. The Magnificent Seven — Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) — currently trade at an average price-to-earnings (P/E) ratio of 28x over the past 12 months. 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US Administration Scrutiny on Chinese Pharma R&D Raises Market Concerns

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This initiative aims to curb China's growing biotech industry but has raised concerns about its potential negative impact on the US pharmaceutical supply chain and patient access to innovative treatments. The draft order includes provisions for stricter scrutiny on US pharmaceutical companies' deals to purchase drug rights from Chinese firms, mandating a "mandatory review" by a US national security committee. Furthermore, it proposes measures to discourage the use of clinical trial data generated from patients in China, calling for more rigorous reviews from the FDA and higher regulatory fees. This potential policy shift targets a substantial and rapidly expanding segment of the pharmaceutical market. In the first half of 2025 alone, roughly one-third of global pharmaceutical licensing spending, or $52 billion, involved Chinese drugs. This represents a significant increase from previous years, with China accounting for 21% of licensing spending in both 2023 and 2024, up from single digits prior. Major pharmaceutical companies, including AstraZeneca, Bristol Myers Squibb, Eli Lilly, and GSK, have collectively pledged approximately $150 billion to license novel treatments from China over the last five years. These deals often involve billions of dollars to secure exclusive development and sales rights for candidate drugs in overseas markets, illustrating the deep integration of Chinese innovation into global pharmaceutical pipelines. Analysis of Market Reaction The prospect of increased US scrutiny on Chinese pharmaceuticals immediately impacted market sentiment, leading to heightened volatility. Shares of Chinese biotech companies listed in the US, such as BeiGene, Zai Lab, and Legendary Biotech, experienced initial stock price declines. 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