Crypto infrastructure startup Commonware has successfully raised $25 million in a significant funding round, with Tempo, a payments-focused blockchain network, leading the investment. This development highlights a renewed commitment to scaling blockchain-based payment systems.
The funding round, initially reported by Fortune, is particularly noteworthy as Tempo was launched in September by the prominent fintech company Stripe and the crypto venture firm Paradigm. Commonware confirmed that other investors also participated in the round, though their identities were not disclosed.
Commonware specializes in developing open-source software that empowers other companies to establish and deploy their own blockchains. This technology is crucial for supporting the expanding ecosystem of Web3 infrastructure specifically designed for payments.
According to Commonware's CEO, who spoke with Fortune, the company prioritizes "usage and distribution" over immediate financial gains, indicating that strategic partnerships with Tempo and Paradigm are considered more valuable at this stage than traditional financial metrics.
Tempo is not a typical investor; the company recently achieved a valuation of $5 billion following a $500 million funding round spearheaded by Thrive Capital and Greenoaks. As a layer-1 blockchain, Tempo has garnered attention for its dedicated focus on stablecoins and real-world payment applications.
At the time of Tempo's launch, Stripe CEO Patrick Collison described it as an "independent company, with Stripe and Paradigm as the first investors."
Crypto Payments Gain Momentum as Stablecoin Adoption Grows
Payments have historically been identified as a primary use case for blockchain technology, and this sector is now experiencing a resurgence in momentum, largely driven by accelerating stablecoin adoption.
This trend was further emphasized on Friday when seven cryptocurrency companies jointly launched the Blockchain Payments Consortium. This initiative is dedicated to establishing common standards for crosschain stablecoin transactions, aiming to streamline and standardize digital currency payments.
The consortium stated, "[F]or blockchain payments to reach full potential, we must address the inconsistent and fragmented experiences individuals and institutions face when moving between traditional payments and blockchain."
In a related development, Bitcoin.com, a platform for crypto media and wallets, has partnered with the layer-1 blockchain Concordium. This collaboration introduces age verification for stablecoin payments, a move the companies explain is a direct response to evolving safety and compliance regulations in various jurisdictions.
The stablecoin market has witnessed substantial expansion over the past year. The recent passage of the US GENIUS Act, a significant piece of stablecoin legislation, is anticipated to further accelerate this growth. Against this backdrop, Citigroup has revised its market capitalization forecast for stablecoins, projecting it to reach $4 trillion by 2030.