DoorDash is teaming up with a group of financial technology companies to integrate stablecoins into their payment processes using Tempo, a blockchain platform developed by Stripe and Paradigm, marking a significant step towards the mainstream adoption of blockchain-based financial systems. Tempo, a payments-focused blockchain, has announced that companies such as DoorDash, Stripe, Coastal Bank, and Latin American fintech ARQ are now using or preparing to use its stablecoin-powered payment rails.
DoorDash, which operates in over 40 countries and facilitated nearly $75 billion in sales for local merchants last year, is working with Tempo to launch stablecoin-based payouts for its merchants, starting with cross-border transactions where speed and cost are crucial. According to DoorDash co-founder Andy Fang, 'stablecoins have the potential to transform financial infrastructure.' Although the exact timeline for the implementation of stablecoin payments at DoorDash has not been disclosed, Stripe is utilizing Tempo as a core component of its money movement products, enabling businesses to send, receive, and hold stablecoins alongside traditional currencies.
The goal is to make global payments 'fast, cheap, and borderless,' as stated by Neetika Bansal, Stripe's head of Connect and money management. The stablecoin market, a $300 billion crypto asset class with prices tied to fiat currencies, promises a cheaper and faster alternative to traditional banking systems for cross-border transactions. As a global payments firm that processes nearly $2 trillion in annual payments, Stripe has made blockchain and stablecoins central to its ambitions, having acquired stablecoin infrastructure firm Bridge for $1.1 billion and crypto wallet provider Privy. The company has also partnered 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 support companies in adopting this technology, Tempo has launched a Stablecoin Advisory service to provide hands-on support for firms looking to transition their payment flows to blockchain.