DoorDash Expands Stablecoin Payments with Blockchain Technology Backed by Stripe

DoorDash, along with several fintech companies, is integrating stablecoins into its payment processes through Tempo, a payments-focused blockchain developed by Stripe and Paradigm, marking a significant step towards blockchain-based money entering mainstream financial systems. Tempo announced on Tuesday that companies such as DoorDash, Stripe, Coastal Bank, and Latin American fintech ARQ are now using or planning to use stablecoin rails for parts of their payment operations. DoorDash, operating in over 40 countries with nearly $75 billion in sales for local merchants last year, is working with Tempo to launch stablecoin-powered payouts for merchants, initially focusing on cross-border transactions where settlement speed and cost are crucial. According to DoorDash co-founder Andy Fang, 'stablecoins have the potential to transform financial infrastructure.' A Paradigm spokesperson did not disclose the exact timeline for when stablecoin payments will be available at DoorDash. Meanwhile, Stripe is utilizing Tempo as a core layer for its money movement products, enabling businesses to send, receive, and hold stablecoins alongside traditional currencies, with the goal of making global payments 'fast, cheap, and borderless,' as stated by Neetika Bansal, Stripe's head of Connect and money management. The stablecoin market, valued at $300 billion, is a crypto asset class with prices tied to fiat currencies, offering a cheaper and faster alternative to traditional banking rails for cross-border transactions. As a global payments firm processing nearly $2 trillion in annual payments, Stripe has made blockchain and stablecoins central to its ambitions, acquiring stablecoin infrastructure firm Bridge for $1.1 billion in 2024 and crypto wallet provider Privy. Stripe also collaborated with crypto investment firm Paradigm to develop Tempo, a payments-focused blockchain that went live last month with infrastructure partners like Mastercard, UBS, Klarna, and Visa. To facilitate companies' adoption of the technology, Tempo is launching a Stablecoin Advisory service to provide hands-on support for firms looking to transition their payment flows to the blockchain.