Tempo, a payments-focused blockchain backed by Stripe and Paradigm, has launched its public testnet to enable real-world on-chain payments using stablecoins.

Stripe’s Bridge division is involved in Klarna’s upcoming digital dollar issuance, reflecting a broader ecosystem move toward stablecoins and on-chain settlement.

Readers are cautioned about investment risk and volatility in cryptocurrencies and urged to conduct independent research.

Klarna launched KlarnaUSD, a USD-backed stablecoin on Tempo, with plans to launch Tempo mainnet in 2026.

The project aligns with a broader momentum around stablecoin payments and programmable money, as cross-border and B2B payments move toward crypto-enabled rails.

Designed as an independent primary network rather than a layer on an existing chain, Tempo targets high-volume real-world financial services like cross-border remittances, payroll processing, and global payouts.

Tempo aims to reduce congestion and volatile gas fees, targeting around one-tenth of a cent per transaction payable in USD-stablecoins.

Six features are live on the testnet, including dedicated payment lanes, stablecoin-native gas, a built-in stable asset decentralized exchange, payments and transfers metadata, fast deterministic finality, and modern wallet signing methods.

In particular, Tempo targets instant settlements and fixed fees of about 0.1 cents per standard payment through its stablecoin-native design.

Stablecoins on Tempo will be created via the TIP-20 standard, though mainnet liquidity and collateral specifics are not yet detailed in the testnet docs.

The protocol seeks instant, deterministic settlement with low fees and a stablecoin-native experience to meet the needs of financial applications on chain.

Overall, Tempo addresses blockchain shortcomings for financial use cases by delivering instant, deterministic settlement with low, predictable costs.