Payments are Moving Onchain
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Good afternoon,
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.
This week’s market
BGCI Index 4.3%
Bitcoin 2.4%
Ethereum 2.6%
Solana 16.2%
All figures are week-to-date as of today 13:00 CET
Theta Blockchain Ventures content
The Satellite View 2025 (read more)
Blockchain news
Nasdaq files with SEC to allow trading of tokenized stocks (read more)
SEC chair Atkins says most tokens not securities in regulatory shift (read more)
Blockchain lender Figure raises $787.5 million in US IPO (read more)
Gemini crypto exchange raises $425 million via IPO (read more)
Kraken expands xStocks offering to Europe as tokenized stocks gain steam (read more)
Fidelity unveils onchain money market fund (read more)
Senate market structure bill draft proposes SEC–CFTC joint committee to end crypto turf wars (read more)
Senate Democrats unveil own crypto market structure framework, setting stage for bipartisan talks (read more)
SEC Chair Atkins says onchain capital raising should come 'without endless legal uncertainty' (read more)
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
Relevant financial updates
“The Great Integration: How Washington Is Absorbing Crypto”, an overview of U.S. regulators shifting from enforcement to rule-based frameworks by Tristero Research (read more)
“From Barclays to Blockchain”, former Barclays CEO Bob Diamond and his partner David Sheamus on the Forward Guidance podcast (watch here)
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