DoorDash, along with several fintech companies, is integrating stablecoins into its live payment processes through Tempo, a payments-focused blockchain developed by Stripe and Paradigm. This move marks a significant step towards the adoption of blockchain-based financial infrastructure. Tempo has announced that companies such as DoorDash, Stripe, Coastal Bank, and Latin American fintech ARQ are now using or preparing to use stablecoin rails for parts of their payment operations.
DoorDash, which operates in over 40 countries and generated nearly $75 billion in sales for local merchants last year, is working with Tempo to introduce stablecoin-powered payouts for merchants, initially focusing on cross-border transactions where settlement speed and cost are crucial. DoorDash co-founder Andy Fang expressed his enthusiasm for the potential of stablecoins to transform financial infrastructure. While the exact timing of the stablecoin payment launch at DoorDash has not been disclosed, Stripe is utilizing Tempo as a core layer for its money movement products, enabling businesses to send, receive, and hold stablecoins alongside traditional currencies. The goal is to make global payments faster, cheaper, and more efficient.
Stablecoins, a $300 billion crypto asset class with prices tied to fiat currencies, promise a more cost-effective and efficient alternative to traditional banking rails for cross-border transactions. Stripe, which processes nearly $2 trillion in annual payments, has made blockchain and stablecoins central to its ambitions, having acquired stablecoin infrastructure firm Bridge and crypto wallet provider Privy. The company has also developed Tempo, a payments-focused blockchain designed specifically for payment workloads, with features such as sub-second settlement, fixed fees, and private transaction channels. To support companies in adopting this technology, Tempo is launching a Stablecoin Advisory service to provide hands-on support for firms looking to move their payment flows to blockchain.