Commonware Secures $25 Million from Tempo as Stripe and Paradigm Invest in Blockchain Development

Commonware, a startup specializing in blockchain infrastructure, has recently secured $25 million in a funding round led by Tempo. This investment highlights a growing commitment to enhance blockchain payment systems, particularly as major players like Stripe and Paradigm deepen their involvement in the blockchain space.

Key Takeaways

Commonware has raised $25 million in funding from Tempo, a payments-centric blockchain network.
Tempo, which was created with the backing of Stripe and Paradigm, is valued at $5 billion, emphasizing its significance in the blockchain sphere.
The Blockchain Payments Consortium has been established to improve standards for cross-chain stablecoin transactions.
Adoption of stablecoins is on the rise, with Citigroup estimating their market cap could reach $4 trillion by 2030.

Commonware secures $25M from Tempo as Stripe, Paradigm deepen blockchain bet

Commonware’s Vision for Blockchain Payments

Commonware, a startup focused on blockchain infrastructure, has raised $25 million in a recent funding round led by Tempo, a blockchain network dedicated to payments. This development signals a renewed focus on scaling blockchain-based payment systems.

Reporting by Fortune reveals that Tempo was recently established by Stripe, a giant in the fintech industry, along with crypto venture firm Paradigm. While Commonware indicated that several other investors contributed to this round, the names of these investors were not disclosed.

Commonware specializes in developing open-source software, enabling companies to create and implement their own blockchains and enhance the growing ecosystem of payment-focused Web3 infrastructure. The CEO of Commonware mentioned to Fortune that “usage and distribution is way more important than money as a startup,” indicating the company's belief that its collaborations with Tempo and Paradigm hold more value at this stage than conventional financial outcomes.

Tempo is not just any ordinary investor; it has made headlines with a valuation of $5 billion, following a substantial $500 million funding round led by Thrive Capital and Greenoaks. This layer-1 blockchain has captured interest for its focus on stablecoins and real-world payment solutions. Stripe’s CEO, Patrick Collison, described Tempo as an “independent company, with Stripe and Paradigm as the first investors.”

Source: Patrick Collison
Related: VC Roundup: Amid crypto funding slump, stablecoin and RWA infrastructure draw capital

Surge in Crypto Payments Linked to Stablecoin Growth

Blockchain technology has long been recognized for its potential in payment systems, and the sector is experiencing renewed momentum as the adoption of stablecoins increases. This trend gained attention recently when seven crypto companies formed the Blockchain Payments Consortium, an initiative aimed at establishing common standards for cross-chain stablecoin transactions.

The consortium emphasized that, “[F]or blockchain payments to reach their full potential, we must tackle the inconsistent and fragmented experiences faced by individuals and institutions when transitioning between traditional payments and blockchain.”

In a related effort, Bitcoin.com, a leading media and wallet platform in the crypto space, has partnered with layer-1 blockchain Concordium to introduce age verification for stablecoin payments. This initiative comes in response to new safety and compliance regulations across various jurisdictions.

The stablecoin market has seen substantial growth in the past year, and with the recent passage of the U.S. GENIUS Act—an important piece of legislation regarding stablecoins—this expansion is expected to accelerate further. In light of these developments, Citigroup has raised its market capitalization forecast for stablecoins to an astounding $4 trillion by 2030.

Related: Stablecoins need consumer protections to unseat incumbents: Crypto executive