Tempo, the Stripe and Paradigm-backed blockchain focused on stablecoin payments, is leveraging decentralized finance (DeFi) by bringing Morpho’s $7.5 billion credit marketplace to the network.
The launch gives Tempo users access to one of DeFi’s largest lending protocols, allowing fintechs and enterprises building the chain to tap into crypto-native lending and deliver products alongside payments infrastructure.
The move underlines a growing trend among fintech and payments companies looking to convert their stablecoin balances into productive assets rather than leaving them idle. So far, Tempo has primarily positioned itself as a blockchain for moving money, offering stablecoin transfers, currency and settlement tools for businesses.
The arrival of Morpho broadens that offering to a more complete financial stack where companies can also lend and earn digital assets directly on-chain. In this way, payment providers and companies park their idle stablecoin supply in curated credit markets to generate returns without leaving the chain.
“We see growing demand from companies looking to integrate DeFi capabilities into their payment products and create more value for their users,” said Eric Kang, GTM at Tempo.
Morpho operates a modular lending system in which market curators can set risk rules and asset parameters for different pools. Venture firms Gauntlet and Sentora said they are starting to offer curated markets on Tempo, while oracle provider RedStone provides price feeds for stablecoins, bitcoin-backed assets and tokenized real-world assets used in the credit markets.
Tempo is part of the rising trend of institution-focused blockchains like Circle’s Arc and Canton Network, backed by Wall Street giants like Nasdaq and Goldman Sachs. The project reportedly raised $500 million last year at a $5 billion valuation and the chain launched in March with backing from a range of global companies including Visa, Mastercard, Revolut, Shopify, Klarna and UBS.