In a significant development, DoorDash is incorporating stablecoin payments into its payment operations using the Stripe-led blockchain platform Tempo. This move signals that blockchain-based currencies are becoming integral to mainstream financial systems.
Tempo, a payments-centric blockchain created by Stripe and venture firm Paradigm, announced in a blog post on Tuesday that companies such as DoorDash, Stripe, Coastal Bank, and ARQ — a fintech from Latin America — have either started or plan to transition parts of their payment processes onto stablecoin channels.
Operating across more than 40 countries and facilitating nearly $75 billion in sales for local merchants last year, DoorDash is collaborating with Tempo to introduce merchant payouts powered by stablecoins. This initiative will initially focus on cross-border transactions where the speed and cost of settlement are crucial.
“Stablecoins hold significant potential for transforming financial infrastructure,” said Andy Fang, co-founder of DoorDash, in a statement.
While Paradigm did not specify when stablecoin payments would become operational at DoorDash, Stripe is incorporating Tempo into its core money movement products. This integration enables businesses to send, receive, and store stablecoins alongside conventional currencies. Neetika Bansal, head of Connect and money management at Stripe, highlighted the objective of making global payments “fast, cheap, and borderless.”
As stablecoins and blockchain frameworks increasingly integrate into international financial flows, it’s noteworthy that these digital assets amount to a $300 billion class with values pegged to fiat currencies. They offer an economical and swift alternative for cross-border transactions compared to traditional banking systems.
Stripe, the global payments processor handling nearly $2 trillion in annual transactions, has positioned blockchain technology and stablecoins at the forefront of its strategic goals. In 2024, Stripe acquired Bridge, a stablecoin infrastructure firm, for $1.1 billion, followed by the purchase of crypto wallet provider Privy.
Furthering its blockchain ambitions, Stripe collaborated with Paradigm to develop Tempo, a payments-focused blockchain that launched recently with partners including Mastercard, UBS, Klarna, and Visa. Designed specifically for payment tasks, Tempo offers features like sub-second settlements, fixed fees, and private transaction channels to cater to enterprise users, distinguishing itself from general-purpose blockchains often plagued by congestion and variable costs.
To facilitate the adoption of this technology, Tempo announced on Tuesday its Stablecoin Advisory service, which will provide comprehensive support for businesses looking to transition their payment operations onto blockchain platforms.