Stripe Backed Tempo Announces Investment In Crypto Infrastructure Firm Commonware – Crowdfund Insider

Strategic Investment in Blockchain Infrastructure to Advance Sustainable Development Goals

Executive Summary

A recent $25 million investment by Tempo, a stablecoin-powered blockchain initiative backed by Stripe and Paradigm, into the cryptocurrency infrastructure firm Commonware marks a significant development in building open and sustainable digital infrastructure. This partnership is poised to advance several key United Nations Sustainable Development Goals (SDGs) by fostering innovation, promoting financial inclusion, and strengthening technological partnerships.

Details of the Strategic Partnership

The collaboration is centered on enhancing the development and application of decentralized technologies. Key components of the agreement include:

• Investment: Tempo has committed $25 million to Commonware.
• Technological Integration: Tempo will leverage the Commonware Library, an open-source collection of modular blockchain primitives, to build its network.
• Collaborative Development: Tempo will serve as a core contributor to the Commonware Library’s ongoing development, aiming for greater speed, simplicity, and open infrastructure.
• Shared Vision: The partnership focuses on enabling differentiated payment experiences through Tempo’s research, supported by Commonware’s foundational primitives.

Alignment with Sustainable Development Goals (SDGs)

This investment and collaboration directly contribute to the global agenda for sustainable development in several critical areas:

1. SDG 9: Industry, Innovation, and Infrastructure

   The venture is fundamentally focused on building resilient, innovative, and accessible digital infrastructure. By investing in an open-source library of modular blockchain components, the partnership promotes the development and dissemination of new technologies, upgrading the technological capabilities of the digital industry.

2. SDG 17: Partnerships for the Goals

   This initiative exemplifies a multi-stakeholder partnership for sustainable development. It brings together a major payments fintech (Stripe), a venture capital firm (Paradigm), and an infrastructure startup (Commonware) to mobilize financial resources and technical expertise towards a common technological goal, enhancing the global partnership for sustainable technology.

3. SDG 8: Decent Work and Economic Growth

   Investment in technology startups like Commonware promotes sustained, inclusive, and sustainable economic growth. It fosters innovation, supports the creation of high-value jobs in the technology sector, and helps integrate small-scale enterprises into the global digital economy.

4. SDG 10: Reduced Inequalities

   The development of a stablecoin-powered blockchain focused on “differentiated payment experiences” holds significant potential for enhancing financial inclusion. By creating more accessible and efficient payment systems, this technology can provide critical financial services to unbanked and underbanked populations, thereby helping to reduce inequality within and among countries.

Ecosystem and Future Outlook

The commitment to building this sustainable infrastructure is further evidenced by prior strategic activities:

• Tempo has secured $500 million in capital from investors including Thrive, Greenoaks, and Sequoia.
• Tempo recently acquired the team behind Ithaca, an open-source development company, to further its technological capabilities.
• Commonware previously raised $9 million in a seed funding round co-led by Haun and Dragonfly Ventures, with support from key industry figures.

These actions collectively signal a robust and long-term commitment to developing an open, efficient, and equitable digital financial ecosystem that aligns with global sustainability objectives.

SDGs Addressed in the Article

SDG 9: Industry, Innovation, and Infrastructure

• The article focuses on innovation within the financial technology (Fintech) and blockchain industry. It details a significant investment in “cryptocurrency infrastructure firm Commonware” to develop new technologies.
• The core of the discussion is about building digital infrastructure, specifically through an “open-source library of modular blockchain primitives” and creating “customizable networks.” This directly relates to the goal of building resilient and innovative infrastructure.
• The text highlights research and development efforts, such as implementing “consensus algorithms as a library,” Tempo’s “ongoing research efforts,” and the hiring of an “Ethereum researcher Dankrad Feist,” all of which are central to fostering innovation.

SDG 17: Partnerships for the Goals

• The article is fundamentally about a partnership, detailing a “$25 million investment” by Tempo in Commonware, which marks the “beginning of a long-term collaboration between the two teams.”
• It showcases a multi-stakeholder approach within the private sector, involving venture firms (“Paradigm,” “Thrive, Greenoaks, and Sequoia,” “Haun and Dragonfly Ventures”), a payments Fintech (“Stripe”), and technology startups (“Tempo,” “Commonware”).
• These partnerships are designed to mobilize financial resources and share technology, as seen with Tempo leveraging the “Commonware Library” and serving as a “core contributor to its development.”

Specific SDG Targets Identified

Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure

• The collaboration aims to build foundational digital infrastructure. Commonware is described as a “cryptocurrency infrastructure firm” that provides “building blocks for customizable networks.” The stated goal of “enabling open infrastructure” directly supports the development of new, resilient technological frameworks.

Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors

• The article provides clear examples of private investment in research and development. The “$25 million investment” by Tempo, its own “$500 million in capital,” and Commonware’s earlier “$9 million… seed funding round” represent significant private R&D spending aimed at upgrading technological capabilities in the blockchain sector.
• The focus on “ongoing research efforts towards mechanisms that aim to unlock differentiated payment experiences” and the acquisition of specialized talent like an “Ethereum researcher” points directly to enhancing scientific and technological capacity.

Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships

• The entire article describes a multi-stakeholder partnership within the technology and finance sectors. It involves venture capital firms (Paradigm, Dragonfly Ventures), established companies (Stripe), and startups (Tempo, Commonware) collaborating to mobilize financial resources (“$25 million investment”), technology (Commonware’s open-source library), and expertise.

Target 17.17: Encourage and promote effective public, public-private and civil society partnerships

• While the article focuses on private-private partnerships, it serves as a clear example of this target’s principle. The collaboration between Tempo, Commonware, Paradigm, and Stripe is a partnership built on shared goals and resources to advance a specific technological frontier, demonstrating an effective resourcing and implementation strategy.

Indicators for Measuring Progress

Quantitative Financial Indicators

• The article provides specific financial figures that can be used as indicators of investment in innovation and partnerships.

1. Value of private investment in technological infrastructure: Mentioned as a “$25 million investment in cryptocurrency infrastructure firm Commonware.”
2. Capital mobilized for innovation projects: Tempo is “equipped with a $500 million in capital after investments from VCs.”
3. Seed funding for technology startups: Commonware secured “$9 million via a seed funding round.”

Qualitative and Project-Based Indicators

• The article implies progress can be measured through the development and release of new technologies.

1. Development of open-source technological tools: The creation and use of the “Commonware Library” of “open-source library of modular blockchain primitives” serves as an indicator of shared technological advancement.
2. Formation of strategic collaborations: The “long-term collaboration between the two teams” (Tempo and Commonware) is a direct indicator of a functional partnership.
3. Creation of new infrastructure platforms: The development of specific products like “Alto, which is described as a minimal (and fast) blockchain” and the “L2 blockchain Odyssey” are tangible outputs that measure progress.

Summary Table of SDGs, Targets, and Indicators

Source: crowdfundinsider.com