Crypto Infrastructure Startup Commonware has raised $25 million in a funding round led by Tempo, a blockchain-focused network, highlighting a renewed effort to scale blockchain-based payment systems.
The deal, first reported According to Fortune on Friday, 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 will develop open-source software that allows other companies to build and deploy their own blockchains, supporting the growing infrastructure ecosystem dedicated to Web3 payments.
COMO’s CEO told Fortune that “usage and distribution are more important than money as a startup,” suggesting the company viewed its tempo and paradigm partnerships as more important at this stage than traditional financial metrics.
Tempo is no ordinary backer. The company is It 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: At the heart of crypto funding, StableCoin, RWA Infrastructure Draw Capital
Crypto payments are gaining momentum as stablecoin adoption grows
Payments have long been the primary use case for blockchain technology, but the sector is once again gaining momentum as StableCoin adoption is accelerating. That trend came to the fore on Friday when seven crypto companies Blockchain Payment Consortium launchedan initiative that aims to create common standards for crosschain stablecoin transactions.
“(F)or blockchain payments to reach their full potential, we must address the uneven and fragmented experiences individuals and institutions face when transitioning between traditional payments and blockchain,” the consortium said.
In a related development, crypto media and wallet platform Bitcoin.com has partnered with Layer-1 Blockchain Concordium to Introduce age verification for StableCoin payments – A move that 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 raised its market capitalization forecast for StableCoins up to $4 trillion by 2030.
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Related: StableCoins need consumer protections to unseat incumbents: Crypto exec
