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Payment giants Stripe and Paradigm launched Tempo, an EVM-compatible Layer-1 blockchain for high-throughput stablecoin payments, aiming to redefine global financial transactions. Executive Summary Stripe and Paradigm have jointly unveiled Tempo, a new EVM-compatible Layer1 blockchain specifically engineered for high-throughput stablecoin payments. This initiative is designed to address existing bottlenecks in blockchain-based payments, such as high fees and unpredictable settlement times, by focusing on speed, predictability, and compliance. The Event in Detail: Tempo's Architecture and Capabilities Tempo is built to facilitate global payment use cases, including cross-border payouts, B2B payments, and remittances. It aims to process over 100,000 transactions per second (TPS) with sub-second finality, a significant performance metric targeting enterprise-grade requirements. The network is built on Paradigm's high-performance Ethereum client, Reth, ensuring EVM compatibility. Key features include predictable low fees, the ability to pay gas fees in any major stablecoin through an enshrined automated market maker, and opt-in privacy features designed to meet regulatory requirements while supporting enterprise needs for transactional discretion. A dedicated payments lane is implemented to separate routine transactions from complex smart contract operations, optimizing for payment-specific functionality. Initial design partners involved in the private testnet include Visa, Deutsche Bank, Shopify, Nubank, Revolut, OpenAI, and Anthropic, encompassing a broad spectrum of traditional finance, e-commerce, and artificial intelligence sectors. Strategic Rationale and Ecosystem Integration The decision to build a new Layer1 blockchain rather than an Ethereum Layer2 stems from Stripe and Paradigm's stated concerns regarding Layer2 centralization, particularly single sequencer models, and finality latency. This positions Tempo as a purpose-built infrastructure aimed at overcoming perceived limitations of existing solutions for payment-specific use cases. The launch of Tempo is a continuation of Stripe's broader crypto strategy, which has seen the company reintroduce crypto payments for US merchants, allowing transactions in USDC and USDP on networks like Ethereum, Solana, or Polygon with fiat settlement. Furthermore, Stripe's strategic acquisitions of Bridge, a stablecoin infrastructure platform ($1.1 billion), and Privy, a Web3 wallet infrastructure company, underscore a comprehensive approach to building a full-stack stablecoin solution. While Tempo aims to be complementary to existing general-purpose blockchains, its design and strategic partnerships indicate an ambition to challenge traditional payment rails like SWIFT and other blockchain-based payment networks. Broader Market Implications and Industry Debate Tempo's launch has ignited significant discussion within the crypto industry, particularly concerning the balance between decentralization and enterprise adoption. While Paradigm founder Matt Huang stated that Tempo is being built with principles of decentralization and neutrality, with plans to transition from an initial permissioned validator set to a fully permissionless model, some critics voice skepticism. Christian Catalini, an original architect of Libra, questioned the promise of neutrality from corporate entities, stating, "As long as there is a single throat to choke — or a committee of them — you can't truly rewire the system." Similarly, crypto author Omid Malekan expressed doubts about the long-term success of permissioned chains, likening Tempo to a "Libra that lived" and suggesting such models represent a "failed coup" against true decentralization. Conversely, Nick van Eck viewed Tempo as a direct challenge to established payment networks, describing it as "a clear shot across the bow [announcing] that they are trying to build the next generation Visa network." The Tempo initiative could significantly accelerate enterprise adoption of stablecoins for global payments and reshape the role of blockchain technology in traditional finance. However, its initial permissioned nature and the ongoing debate surrounding corporate-led blockchain solutions will be key factors in its long-term integration into the broader Web3 ecosystem and its impact on decentralization narratives.
Paxos, Frax, and Agora compete to issue Hyperliquid's native stablecoin, USDH, leading to potential shifts in decentralized finance. Executive Summary Several major players in the cryptocurrency space, including Paxos, Frax, and Agora, are vying to issue Hyperliquid's native stablecoin, USDH. This auction highlights the strategic importance of stablecoins within decentralized finance (DeFi) and the potential for innovative revenue-sharing models. The outcome could impact the value of HYPE tokens and reduce Hyperliquid's reliance on centralized stablecoins like USDC. The Event in Detail Hyperliquid, a perpetual trading platform, is auctioning off the ticker "USDH" for its native stablecoin. This has attracted significant interest, with bids from Paxos, Ethena, Frax, Agora, and Native Markets. Each bidder is proposing various incentives for the Hyperliquid community, including profit sharing and HYPE token buybacks. The final decision will be determined by a vote on September 14th. Notably, Hyperliquid's monthly perpetual contract trading volume is near $400 billion, generating $106 million in fees in August and dominating 70% of the decentralized perpetual market. This significant trading volume makes securing the USDH ticker a potentially lucrative opportunity. Paxos proposes directing 95% of earned interest from USDH reserves towards buybacks of Hyperliquid's HYPE token. Frax plans to back USDH with frxUSD and offer zero commission, potentially generating annualized returns of $220 million. Agora pledges to return 100% of net revenue to the ecosystem. Agora's proposal, led by Nick van Eck, involves a coalition of top-tier providers, including State Street as custodian ($49 trillion in assets under custody) and VanEck managing $130 billion in assets, to ensure scalability and reliability. Market Implications The introduction of USDH could lead to a new stablecoin model where profits are shared with the community, potentially increasing the value of HYPE. It could also reduce Hyperliquid's dependence on centralized stablecoins such as USDC. This move could trigger similar actions from other platforms seeking to capitalize on the stablecoin market. The competition for USDH also underscores the increasing institutional interest in DeFi and the growing importance of regulatory compliance. Paxos is positioning USDH as one of the first stablecoins explicitly structured to meet both the U.S. GENIUS Act and Europe's MiCA framework. Expert Commentary According to Paxos, USDH reserves will direct 95% of earned interest toward buybacks of Hyperliquid's HYPE token, recycling value to users, validators, and developers. Paxos stated that its experience issuing BUSD, which at its peak exceeded $25 billion in circulation, equips it to deliver a stablecoin designed to meet GENIUS and MiCA standards. Broader Context The battle for USDH comes amid Hyperliquid's rising prominence in the decentralized derivatives market. The platform has captured approximately 70% market share among leading perpetual trading platforms, outpacing competitors such as Jupiter and Orderly Network. The platform's success stems from its layer-1 blockchain HyperEVM architecture, which delivers high performance and reduced transaction costs for traders. Hyperliquid's zero-gas model and on-chain architecture distinguish it from traditional centralized platforms. The HYPE token utilizes a buyback-and-burn model that reduces supply, potentially supporting price growth. However, competition from emerging platforms and regulatory scrutiny could challenge its market position.
Pax Dollar (USDP) was created by Paxos, a financial technology company on a mission to modernize finance by mobilizing assets at the speed of the internet. Paxos was the first virtual currency company to receive a charter from the New York State Department of Financial Services. As a chartered limited purpose trust company with fiduciary powers under the Banking Law, Paxos is able to offer regulated services in the crypto-asset and virtual commodities space.
The Paxos team comes from a wide variety of backgrounds with a diverse array of experiences ranging from Wall Street to Silicon Valley. It’s led by CEO and co-founder Charles Cascarilla, who has spent his career as a customer, analyst, investor and now creator of financial technology.
Paxos describes itself as “the first regulated Trust company with blockchain expertise”, and it is using that expertise to create a modern settlement solution that can eliminate risk and simplify settlements. What many people may not know about Paxos is that it was actually founded in 2012 as Paxos Trust Company, and that for most of its life it ran the cryptocurrency exchange itBit, which is still operates. The creation of Paxos was a pivot from an exchange platform to a company focused on creating a modern settlement platform using blockchain technology.
Paxos has become the most widely adopted cryptocurrency in the fastest time frame, with support from over 20 exchanges and OTC desks in the first five weeks of its existence. It’s been picked up and listed by six of the top ten cryptocurrency exchanges, Binance, OKEx, Gate.io, ZB, KuCoin and DigiFinex. These exchanges are offering PAX as an alternative to the controversial Tether. Unlike the controversy surrounding the people who control Tether, there is no such obscurity when it comes to the people behind Paxos. The CEO and co-founder is Charles Cascarilla. He has over 15 years in financial services and has co-founded Cedar Hill asset management back in 2005. He has also worked and Bank of America and Goldman Sachs prior to that.
The Pax Dollar (USDP) is the first digital asset to be issued by a financial institution and to be fully secured by the U.S. dollar. While other similar stablecoins have existed, there has been no proof of full U.S. dollar reserves, nor have these earlier assets been issued by a financial institution. The Paxos team has been fairly clear in declaring the different base that PAX is working from. (Data from Coingecko)
Pax Dollar (USDP) current price is $0.999792, down 0% today.
Pax Dollar (USDP) daily trading volume is $3.2M
Pax Dollar (USDP) current market cap is $63.2M
Pax Dollar (USDP) current circulating supply is 63.2M
Pax Dollar (USDP) fully diluted market cap (FDV) is $63.2M