Payments are moving onchain

Something big is happening in payments, and payments processing giant Stripe is no longer pretending otherwise.

Last week, Stripe officially unveiled Tempo, a new Layer 1 blockchain purpose-built for payments. Tempo is Stripe’s most aggressive crypto move yet. It marks a decisive shift from Stripe as fintech middleware to Stripe as full-stack settlement layer. That’s not “playing with crypto.” That’s declaring war on the incumbents.

Rather than integrating into an existing network, Stripe made the notable decision to build a new chain — EVM-compatible, but distinct from Ethereum Layer 2 approaches pursued by firms like Robinhood. It reflects the fragmentation of strategies as fintechs seek more control over the financial backend of the internet. By building a custom Layer 1 they can fully tailor it to their specific needs as a payments focused chain, while accepting that direct interoperability with DeFi will be more of a challenge.

This move is not about Stripe “going crypto” in the narrow sense. It follows earlier acquisitions (Bridge for stablecoins, Privy for wallets) and points to a broader recognition: stablecoins are becoming the default rails for global money movement. Cross-border settlement, remittances, global payouts — areas where trust, speed, and cost matter — are the natural first footholds. Stripe’s transformation is a strong sign that the rearchitecting of finance onto open, trust-minimized networks is really taking place.

Stripe’s move reminds us of Facebook (now Meta) trying to launch Libra (later Diem) in 2020, a project which was abandoned due to regulatory pressure. Stripe’s move clearly shows how far we’ve come since then. In just a few months, we’ve gone from institutions using stablecoins to launching native stablecoins (like PayPal), using sovereign blockchains. Each step has accelerated crypto’s transformation from asset class to payment rails to operating system for money. Stripe, with its $100bln valuation and unmatched reach across fintech, may be the first to ship a blockchain users touch without even knowing it.

A lot of the above will be discussed on a webinar we are hosting together with SFO Alliance next Tuesday. To sign up click here.

Also this week

• Nasdaq files with SEC to allow trading of tokenized stocks
• SEC chair Atkins says most tokens not securities in regulatory shift
• Blockchain lender Figure raises $787.5 million in US IPO
• Gemini crypto exchange raises $425 million via IPO
• Kraken expands xStocks offering to Europe as tokenized stocks gain steam
• Fidelity unveils onchain money market fund

Relevant financial updates

• Linea*, a Layer 2 scaling solution for Ethereum, designed to enhance the blockchain's performance by providing faster, more secure, and cost-effective transactions, had its TGE and is now trading at a $1.7bln FDV
• OpenLedger*, a blockchain-based platform offering permissionless and verifiable data infrastructure for AI development, had its TGE and is now trading at a $886mln FDV
• Avantis*, a decentralized trading platform offering synthetic perpetual contracts across cryptocurrencies, forex, metals, and commodities, had its TGE and is now trading at a $294mln FDV
• Sensible, a cryptocurrency platform offering interest-bearing accounts on assets such as Bitcoin, Ethereum, and Solana, was acquired by Coinbase for an undisclosed amount
• Wildcat*, a decentralized credit protocol enabling undercollateralized lending through customizable onchain credit markets, has raised $3.50mln at a $35mln post-money valuation in an Extended Seed funding round with investments from Robot Ventures and 8 others
• Inversion*, a private equity firm acquiring legacy businesses and transitioning their operations to crypto rails, has raised $26.50mln in a Seed funding round with investments from Hashkey Capital, Dragonfly, Balaji Srinivasan, ParaFi Capital, Mirana Ventures and 35 others
• Gemini*, a full-reserve and highly-regulated cryptocurrency exchange and custodian, has raised $50mln in a Strategic funding round with investments from Nasdaq Ventures
• Lombard*, a platform dedicated to integrating Bitcoin into DeFi, has raised $94.7mln in a Public Token Sale
• Figure*, a financial firm specializing in blockchain-powered home equity lending and related loan products, has raised $788mln in a IPO funding round valuing the company at $5.3bln

*Underlying TBV portfolio position | Prices as per 12/09

Interesting things to read

• “The Great Integration: How Washington Is Absorbing Crypto”, an overview of U.S. regulators shifting from enforcement to rule-based frameworks by Tristero Research
• “From Barclays to Blockchain”, former Barclays CEO Bob Diamond and his partner David Sheamus on the Forward Guidance podcast

Upcoming events

• Legends4Legends 2025, Amsterdam