Stripe and Paradigm have introduced Tempo, a blockchain built specifically for stablecoin payments. Unlike general-purpose networks, Tempo eliminates native gas tokens, supports fees in stablecoins, and promises 100k+ TPS with sub-second finality. It is EVM-compatible, built on Paradigm’s Reth, and incorporates payment-specific features such as batch transfers, memos, privacy options, and compliance hooks. Stellar, launched in 2014, has long specialized in cross-border payments. It leverages anchors for fiat connectivity, runs on the Stellar Consensus Protocol (SCP), and recently expanded with Soroban smart contracts. Its compliance standards (SEPs) and on/off-ramp ecosystem make it a production-ready choice for regulated payments.

While Tempo’s design is innovative, it is still in private testnet. Stellar, by contrast, has settled billions of transactions over a decade. For fintech leaders, the key is not which chain “wins,” but how these approaches can serve different payment contexts.

Stablecoins and the Need for Payment-Focused Blockchains

Stablecoins, digital tokens pegged to fiat currencies, now represent a $270 billion asset class. They promise faster, cheaper global value transfer than traditional rails, enabling use cases like microtransactions, remittances, and on-chain payroll.

Yet existing blockchains have not met enterprise needs. Ethereum and Solana, while hosting stablecoins, were built for general-purpose or DeFi use, not high-volume payments. Fees remain unpredictable, throughput insufficient, and compliance features underdeveloped. Stripe, handling billions of transactions off-chain, has noted that no current chain matches its performance or regulatory requirements.

To fill this gap, Stripe incubated Tempo, a blockchain purpose-built for stablecoin payments. Launched in September 2025, it enters a field where Stellar has been the longstanding leader. Stellar’s focus on fiat anchors and cross-border exchange highlights the central question: can Tempo’s payments-first design surpass Stellar’s decade of operational maturity?

Tempo: A Payments-First Blockchain for Stablecoins

Design Priorities: Tempo is a blockchain where every layer is optimized for payment stability and compliance, not speculation. Its defining features include:

• Stablecoin Fees: Tempo removes native gas tokens. An enshrined AMM allows fees in any major stablecoin, eliminating the need to hold ETH or XLM. This makes costs predictable and aligns with enterprise accounting.

• Throughput and Finality: The network targets 100k+ TPS with sub-second settlement, aiming to rival or exceed Visa-scale performance. Early private tests confirm tens of thousands TPS, but public benchmarks are pending.

• EVM Compatibility: Built on Paradigm’s Reth, a Rust-based Ethereum client, Tempo reuses Solidity and JSON-RPC. Its novelty lies in a policy layer tuned for payments, lowering barriers for Ethereum developers.

• Payments UX: Features include batch transfers, ISO 20022-compatible memos, access lists, opt-in privacy, and address blocklists/allowlists. These embed payment processor logic directly into the protocol.

• Governance: Tempo launches with a curated validator set to guarantee reliability, with a roadmap toward permissionless participation.

Status: Tempo is an independent company incubated by Stripe and Paradigm. As of Q3 2025, it remains in private testnet, with design partners including Visa, Deutsche Bank, Shopify, Nubank, and Revolut. Documentation and code are not yet public, leaving details of consensus and AMM mechanics unclear. Still, Stripe’s ambition is to position Tempo as the default stablecoin settlement rail for payments and emerging machine-to-machine use cases.

Stellar: The Incumbent Payment Blockchain

Since 2014, Stellar has been purpose-built for cross-border payments and fiat connectivity.

• Anchors: Financial institutions act as on/off-ramps, issuing fiat-backed tokens and redeeming them for local currency. This model links blockchain settlement with traditional banking systems.

• Consensus: Stellar uses the Stellar Consensus Protocol (SCP), a federated Byzantine agreement that finalizes ledgers in ~5 seconds. A 2025 roadmap aims for 5,000 TPS and 2.5-second closes.

• Fees: Transactions require minimal XLM fees (0.00001 XLM) and a small account reserve. Costs remain negligible, though users must hold some XLM.

• Liquidity and FX: Stellar includes an on-ledger DEX and path payments, enabling atomic multi-currency conversion in a single transaction. Anchors provide liquidity for fiat pairs.

• Smart Contracts: With Soroban (Rust→WASM), Stellar now supports complex contracts while emphasizing safety and predictable costs.

• Compliance: Stellar Ecosystem Proposals (SEPs) standardize KYC/AML, deposits, withdrawals, and asset issuance. Issuers can freeze or restrict assets as required.

Over its lifetime, Stellar has processed billions of transactions across 70+ countries. Partnerships with players like MoneyGram and Circle have made it one of the most widely integrated payment blockchains.

Conclusion

Tempo represents a bold new entry in blockchain payments. Its stablecoin-gas model, sub-second finality, and EVM alignment are designed to solve pain points for enterprises frustrated with existing chains. If successful, it could become a high-speed backbone for Stripe-adjacent flows and emerging microtransaction use cases.

Stellar, however, remains the production-ready standard. Its anchors, SEPs, and proven reliability already support regulated fiat corridors worldwide. While Stellar’s throughput targets are modest compared to Tempo’s, its practical integrations make it the safer choice today.

For fintech leaders, the opportunity lies in a dual strategy: use Stellar now for corridors that demand reliability and compliance, while piloting Tempo as it matures. The payments landscape may not be zero-sum – both networks could serve complementary roles in moving stablecoins into mainstream finance.