Tempo, a payments-first blockchain backed by Stripe and Paradigm, has launched its public testnet, aiming to enable stablecoin payments for mainstream financial use. This launch allows developers and enterprise partners to test payment flows on-chain, moving the project from concept into live network experimentation.
The network targets sub-cent, stablecoin-paid fees and instant finality, with the goal of solving issues like network congestion, volatile gas costs, and settlement delays in everyday payments.
Tempo and Stripe Partnership
Tempo, first introduced in September, was designed for high-volume financial transactions. The testnet enables fintech firms, banks, and developers to test the network’s performance ahead of a future production launch.
Alongside the testnet debut, Tempo announced an expansion of its partner group. New participants include buy-now-pay-later company Klarna, prediction markets platform Kalshi, payments company Mastercard, and Swiss bank UBS. These join an existing group of design partners that includes Deutsche Bank, Visa, Shopify, OpenAI, and Nubank, spanning traditional banking, global card networks, commerce platforms, artificial intelligence, and digital-native consumer finance.
Addressing Payment Inefficiencies
Tempo aims to overcome obstacles that have limited blockchain adoption in everyday payments. These include network congestion, volatile transaction fees, and reliance on native gas tokens with unpredictable pricing. The network charges approximately one-tenth of a cent per transaction, with fees paid in U.S. dollar-denominated stablecoins.
By eliminating exposure to volatile gas tokens, Tempo offers a predictable cost structure for enterprise-scale payment flows. The network also provides instant finality, a feature considered essential for real-time checkout, remittances, and time-sensitive financial transactions. The testnet will serve as a testing ground for these technical claims, allowing participants to assess throughput, reliability, and integration complexity under live conditions.
The Growing Stablecoin Economy
Tempo's launch occurs as stablecoins transition from crypto trading tools into financial infrastructure. Stablecoins represent approximately $300 billion in assets and are increasingly utilized for cross-border payments, treasury operations, and merchant settlement.
A recent report from Keyrock and Bitso projects that business-to-business payments, peer-to-peer transfers, and card-based transactions will be the primary growth engines for stablecoins in the coming years. The demand for programmable, dollar-denominated settlement continues to rise as global payments become more digital, according to the report. This momentum has fueled new blockchains and infrastructure platforms built around stablecoin payments, positioning Tempo in competition with other settlement networks.
Stripe's Stablecoin Ambitions
The testnet launch signifies Stripe's expanding presence in the stablecoin economy. Through its stablecoin-focused subsidiary, Bridge, Stripe has been developing infrastructure to support digital dollar issuance and global settlement. Bridge is expected to assist Klarna in issuing its own digital dollar next year, connecting consumer financing to blockchain-based payment rails. This strategy positions stablecoins as a foundational layer for internet-native payments, according to industry observers.
Future Outlook and Challenges
Tempo's path from testnet to large-scale production use remains uncertain. The network must demonstrate that its low-fee model and instant finality can scale reliably under sustained transaction volumes. Network stability, security, uptime guarantees, and regulatory compliance will be scrutinized as banks and global payment firms evaluate integration.
Regulatory clarity will be critical as traditional financial institutions move on-chain. As the lines blur between blockchain-native infrastructure and regulated payment systems, projects like Tempo will be tested on performance, governance, and compliance.
With backing from Stripe and Paradigm and a network of global partners, Tempo enters this phase with institutional support. The launch of Tempo’s public testnet coincides with the expansion of stablecoins into mainstream commerce and intensifying competition to define the dominant infrastructure for on-chain payments.