Cryptocurrency infrastructure startup Commonware has raised $25 million in a funding round led by Tempo, a payments-focused blockchain network, underscoring renewed efforts to scale blockchain-based payment systems.
Deal first I mentioned by Fortune on Friday, which is noteworthy because Tempo was launched in September by fintech giant Stripe and cryptocurrency venture firm Paradigm. Commonware said other investors participated in the round, but declined to mention their names.
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’s CEO told Fortune that “usage and distribution are more important than money as a startup,” suggesting that the company views its partnerships with Tempo and Paradigm as more valuable at this stage than traditional financial metrics.
Tembo is no ordinary supporter. The company was recently valued at $5 billion following a $500 million funding round led by Thrive Capital and Greenoaks. Layer 1 blockchain technology has attracted attention for its focus on stablecoins and real-world payments.
At the time, Stripe CEO Patrick Collison described Tempo as “an independent company, in which Stripe and Paradigm were the first investors.”
Related to: Venture Capital Roundup: Amid Cryptocurrency Funding Decline, Stablecoins and RWA Infrastructure Attract Capital
Cryptocurrency payments are gaining momentum as adoption of stablecoins grows
Payments have long been a core use case for blockchain technology, but the sector is regaining momentum as adoption of stablecoins accelerates. This trend came to the fore on Friday when seven cryptocurrency companies launched the Blockchain Payments Consortium, an initiative aimed at creating common standards for stablecoin transactions across the blockchain.
“(F)or blockchain payments to reach their full potential, we must address the inconsistent and fragmented experiences that individuals and organizations face when navigating between traditional and blockchain payments,” the consortium said.
In a related development, cryptocurrency media and wallet platform Bitcoin.com has teamed up with top-tier Concordium to offer 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 this growth. Against this backdrop, Citigroup has raised its stablecoin market cap forecast to $4 trillion by 2030.
Related to: Stablecoins Need Consumer Protection to Unseat Incumbents: Crypto exec
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