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    Stripe Launches Tempo Testnet

    Ethan CarterBy No Comments8 Mins Read



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    Welcome to The Protocol, CoinDesk’s weekly roundup of the most significant developments in cryptocurrency technology. I’m Margaux Nijkerk, a reporter at CoinDesk.

    In this edition:

    • Stripe-Backed Blockchain Tempo Launches Testnet; Kalshi, Mastercard, and UBS Join as Partners
    • ZKsync Lite to Conclude in 2026 as Matter Labs Transitions
    • Blockstream Connects Lightning and Liquid for Enhanced, Private Bitcoin Transactions
    • Axelar Introduces AgentFlux to Bring AI Agents On-chain, Mitigating Cloud Risks

    Network News

    STRIPE’S TEMPO TESTNET IS LIVE: Tempo, a blockchain centered on payments and supported by Stripe and investment firm Paradigm, has launched its public testnet, marking a crucial milestone for mainstream stablecoin payments. Tempo has also revealed an expansion of its partner network, which now includes buy-now-pay-later company Klarna, predictions platform Kalshi, payments leader Mastercard, and Swiss bank UBS. These firms join previous design partners like Deutsche Bank, Visa, Shopify, OpenAI, and Nubank. Introduced in September, Tempo is crafted to handle high-volume financial transactions with minimal fees, immediate finality, and inherent support for stablecoins. With the testnet operational, developers and corporate allies can start experimenting with real-world on-chain payments. This aligns with the growing trend towards blockchains purpose-built for stablecoin transactions, as the global adoption of digital currencies ascends. Currently valued at $300 billion, stablecoins are expected to play a pivotal role in cross-border payment mechanisms, with B2B, P2P, and card payments driving this growth, as stated in a recent report by Keyrock and Bitso. Tempo’s goal is to address common challenges in blockchain finance, such as network congestion and fluctuating transaction fees. The network charges approximately one-tenth of a cent per transaction, payable in U.S. dollar-pegged stablecoins, negating the need for a volatile gas token. — Krisztian Sandor Read more.

    ZKSYNC LITE TO BE RETIRED IN 2026: Matter Labs intends to phase out ZKsync Lite, the initial version of its Ethereum layer-2 network, as announced by the team in a post on X over the weekend. The company framed this move, occurring in early 2026, as a planned conclusion for a proof-of-concept that validated their zero-knowledge rollup design choices prior to the implementation of newer systems. Launched in 2020, ZKsync Lite was designed for simple token transfers but took a back seat following the release of ZKsync Era in March 2023, which offers a more advanced zkEVM rollup and serves as the foundation for the project’s broader ZK Stack roadmap. The Lite network will continue to function for the time being, with funds remaining secure and withdrawals to the Ethereum mainnet still permitted, according to the team. A detailed migration plan and timeline for the shutdown will be made available next year. — Margaux Nijkerk Read more.

    BLOCKSTREAM APP INTRODUCES LIGHTNING ATOMIC SWAPS: Blockstream has launched an update to its mobile app, enabling users to interchange between Bitcoin’s Lightning and Liquid networks, which aims to lower the barriers for private, swift bitcoin transactions. The new version of the Blockstream Green app introduces support for trustless atomic swaps between both networks. This update allows users to pay Lightning invoices directly from their Liquid bitcoin (LBTC) balances, eliminating the need to manage Lightning channels or ensure inbound liquidity, which can be technically overwhelming for many. Lightning is optimized for real-time, low-cost bitcoin payments, while Liquid serves as a sidechain providing confidential transactions and simpler management of unspent bitcoin outputs (UTXOs). By connecting both networks through atomic swaps, Blockstream seeks to offer users the advantages of each without the necessity for deep technical knowledge. The swapping process occurs in a self-custodial manner and relies on cryptographic hash locks to guarantee that either both parts of the transaction are executed, or neither is. If any issues arise, funds revert automatically to the originating wallet. — Helene Braun Read more.

    AXELAR LAUNCHES NEW AI PRIVACY FRAMEWORK: Axelar has revealed AgentFlux, an open-source framework designed to run AI agents locally while keeping private keys, trading strategies, and client data off the cloud — a proposal aimed specifically at institutions exploring on-chain finance with concerns over privacy risks. Developed by Interop Labs, the team behind the Axelar network, AgentFlux enables financial firms to deploy “agentic” automation without transmitting sensitive information to external structures, as announced by the company. The framework addresses a major friction point in AI-driven crypto operations: tool-calling. Currently, most agents rely on cloud-based models to determine which blockchain tools to utilize and how to structure transactions, which can inadvertently expose the very information institutions aim to safeguard. AgentFlux divides these tasks into two distinct, specialized models: one for selecting the appropriate tool and another for formulating the arguments necessary to execute. According to the Axelar team, this setup enhances tool-calling accuracy by 46% in benchmark tests, bringing local models closer in performance to larger cloud systems. – Margaux Nijkerk Read more.

    In Other News

    • Superstate, a blockchain-centered fintech firm, has launched a new platform allowing U.S. Securities and Exchange Commission (SEC)-registered public companies to issue shares directly on-chain to investors on Ethereum. Named the Direct Issuance Program, Superstate’s initiative enables companies to raise funds by selling newly issued, tokenized equity in exchange for stablecoins. Investors receive tokenized shares right away, while the company’s shareholder records are updated instantaneously through Superstate’s SEC-registered transfer agent infrastructure. The first issuers are anticipated to go live next year, as stated by the firm. This development coincides with the increasing interest in tokenization among financial institutions and other companies exploring blockchain solutions for improved efficiency. In an interview last week, SEC Chairman Paul Atkins mentioned that tokenization could “reshape the financial system” in the forthcoming years, indicating that regulators are becoming more open to blockchain as part of the next generation of market infrastructure. — Krisztian Sandor Read more.
    • BitMine Immersion Technologies (BMNR), the Ethereum-focused digital asset treasury firm, acquired 138,452 ether last week, accelerating its accumulation strategy which now totals 3.86 million tokens, as reported by the company here. At current ETH values, this acquisition is valued at approximately $435 million, marking a 156% increase from four weeks ago when it added around 54,000 ETH; this is also significantly higher than the previous two weeks’ additions of 97,000 and 70,000 tokens. The firm also boosted its cash reserves to $1 billion, up from last week’s $882 million. Including a modest Bitcoin stash and an investment in Eightco Holdings (ORBS), the company’s total crypto and cash assets are now worth $13.2 billion. This latest purchase elevates BitMine’s share of the circulating supply of the second-largest cryptocurrency to over 3.2%, solidifying its status as the largest known ETH treasury. — Krisztian Sandor Read more.

    Regulatory and Policy

    • A Republican U.S. senator involved in negotiating the crypto market structure bill, which is the industry’s top policy priority, Senator Cynthia Lummis, stated that the White House resisted ethics provisions she collaborated on with Democrats. This has positioned the Wyoming senator as a mediator, aiming to satisfy her Democratic colleagues while persuading the White House to cooperate, she noted during the Blockchain Association’s policy summit in Washington. Nevertheless, she believes that a working draft should be revealed by week’s end, with formal markup anticipated for the following week. Lummis mentioned that she and Democratic Senator Ruben Gallego had formulated some ethics language. While she did not disclose specifics, one major sticking point for Democrats has been their insistence that high-ranking officials should not be able to profit from the industry over which they have policy authority — largely directed at President Donald Trump and his family’s crypto ventures. — Jesse Hamilton Read more.
    • The U.S.’ second-largest teacher’s union is urging the Senate to reevaluate a crypto bill they claim jeopardizes 1.8 million members’ pensions, while offering minimal solutions to combat fraud and corruption in the digital assets domain. In a letter dated Dec. 8 received by CNBC, Randi Weingarten, president of the American Federation of Teachers (AFT), addressed the U.S. Senate Banking Committee regarding the Responsible Financial Innovation Act, stating, “it poses profound risks to the pensions of working families and the overall stability of the economy.” The proposal, which builds on a measure passed by the House earlier this year, is co-sponsored by crypto advocate Senator Cynthia Lummis and Senator Bernie Moreno, alongside Senate Banking Committee Chair Tim Scott. Although the bill outlines a framework for overseeing digital assets, it also raises new questions about the regulation of tokenized securities, which are financial instruments that are not strictly cryptocurrencies. “The legislation on crypto we have encountered has raised significant concern for us,” Weingarten wrote. “It is as irresponsible as it is reckless. We believe that if enacted, this bill could lay the groundwork for the next financial crisis. Beyond the risk to the retirement security of working families, the legislation being considered does little to mitigate the illegal activities, fraud, and corruption that remain prevalent in anonymous crypto markets,” she concluded. — Olivier Acuna Read more.

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    Ethan is a seasoned cryptocurrency writer with extensive experience contributing to leading U.S.-based blockchain and fintech publications. His work blends in-depth market analysis with accessible explanations, making complex crypto topics understandable for a broad audience. Over the years, he has covered Bitcoin, Ethereum, DeFi, NFTs, and emerging blockchain trends, always with a focus on accuracy and insight. Ethan's articles have appeared on major crypto portals, where his expertise in market trends and investment strategies has earned him a loyal readership.

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