Commonware secures $25M from Tempo as Stripe, Paradigm deepen blockchain bet
Crypto infrastructure startup Commonware has raised $25 million in a funding round led by Tempo, a payments-focused blockchain network, underscoring a renewed effort to scale blockchain-based payment systems.
The deal, first reported by Fortune on Friday, is notable because Tempo was launched in September by fintech giant Stripe and crypto venture firm Paradigm. Commonware said other investors participated in the round but declined to name them.
Commonware develops open-source software that allows other companies to build and deploy their own blockchains, supporting the growing ecosystem of payment-oriented Web3 infrastructure.
Commonware CEO told Fortune that “usage and distribution is way more important than money as a startup,” suggesting the company views its partnerships with Tempo and Paradigm as more valuable at this stage than traditional financial metrics.
Tempo isn’t an ordinary backer. The company was recently valued at $5 billion after a $500 million funding round led by Thrive Capital and Greenoaks. The layer-1 blockchain has drawn attention for its focus on stablecoins and real-world payments.
At the time, Stripe CEO Patrick Collison described Tempo as an “independent company, with Stripe and Paradigm as the first investors.”
Related: VC Roundup: Amid crypto funding slump, stablecoin, RWA infrastructure draw capital
Crypto payments gain momentum as stablecoin adoption grows
Payments have long been a core use case for blockchain technology, but the sector is regaining momentum as stablecoin adoption accelerates. That trend came to the forefront on Friday when seven crypto companies launched the Blockchain Payments Consortium, an initiative aimed at creating common standards for crosschain stablecoin transactions.
“[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,” the consortium said.
In a related development, the crypto media and wallet platform Bitcoin.com partnered with layer-1 blockchain Concordium to introduce age verification for stablecoin payments — a move the companies say is in response to new safety and compliance laws in various jurisdictions.
The stablecoin market has expanded rapidly over the past year, and the recent passage of the US GENIUS Act — a key piece of stablecoin legislation — is expected to accelerate that growth. Against this backdrop, Citigroup has raised its market capitalization forecast for stablecoins to $4 trillion by 2030.
Related: Stablecoins need consumer protections to unseat incumbents: Crypto exec
