Crypto startup Commonware has raised $25 million in new funding led by Tempo, a payments-focused blockchain launched by Stripe and Paradigm.
The deal, according to a report from Fortune, aims to make blockchain payments faster and easier for real-world use. Moreover, Commonware will work with Tempo to build better tools for payment processing, said Paradigm CTO Georgios Konstantopoulos.
Commonware founder Patrick O’Grady said he chose Tempo because of its strong network. “Usage and distribution is way more important than money as a startup,” he told Fortune. He also added that partnering with Tempo offered a long-term opportunity to grow without relying only on traditional venture funding.
Founded in 2024, Commonware creates open-source software that helps other companies launch and manage their own blockchains. Despite its small size, the startup has only seven employees and four customers, yet it is already profitable. Each client brings in more than $1 million in yearly revenue. In fact, the company said demand is rising, noting that there is “a bit of a backlog” of companies waiting to work with them.
Meanwhile, Tempo has been growing fast since it was revealed in September. The startup, backed by Stripe and crypto investor Paradigm, has already bought another company called Ithaca and hired Ethereum researcher Dankrad Feist.
Furthermore, Tempo has expanded from about five workers to nearly fifty in just a few months. It is now valued at $5 billion after raising $500 million from top venture firms such as Thrive Capital, Greenoaks, Sequoia, and Ribbit Capital.
Additionally, Tempo’s design partners include OpenAI, Anthropic, and Shopify. O’Grady said Tempo’s strong team and partners make it an ideal match for Commonware’s mission. “We think that they’re going to do just as good of a job, or better, showing off what Commonware can do,” he said.
The partnership also comes as blockchain payments gain new attention across the industry. More companies are working to make digital transactions easier and safer.
As a result, stablecoin use is growing, and banks like Citigroup expect the market to reach $4 trillion by 2030.
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