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As everyone obsesses over Tempo's design decisions, CT is once again missing the forest from the trees
Tempo provides Stripe with the final piece to build out their own payments network to compete directly with Visa and other card networks
Today’s payment networks are made up of four key stakeholders, each taking their cut of the net economics:
- Issuing banks
- Acquiring banks
- Card networks
- Payment processors
Interestingly, crypto infra maps quite elegantly onto the traditional payments stack
Stablecoin issuers look a lot like digital issuing banks - they issue tokens backed by user funds in yield-bearing assets
Wallets look a lot like acquirers - they provide infrastructure for merchants to accept stablecoin payments natively
Orchestrators look a lot like payment processors - they handle routing, compliance, and fraud prevention
Blockchains look a lot like card networks - they serve as a credibly-neutral asset ledger that connects each respective layer
If you were to rebuild the payments stack from first principles, it would probably look something like a blockchain-native payment network that vertically integrates each respective layer on-chain
Stripe clearly understands this
Through their strategic acquisitions, they now own (1) the orchestration and issuance layer through Bridge (most don’t know this but Bridge also has their own stablecoin called USDB) (2) wallet infra through Privy and (3) blockchain rails themselves through Tempo
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