Visa launches on the Tempo blockchain as an anchor validator – More inside

Digital payments platform Visa has announced the launch of its validator node on the Tempo Network. Announced on the 14th of April, this move by Visa would boost transaction validation and accelerate the development of on-chain payment infrastructure.

For context, Tempo is a purpose-built Layer-1 blockchain enabling machines and software agents to make payments and transact with each other automatically. Needless to say, with this move, Visa would also be able to run “critical blockchain operations in-house.” 

Remarking on the same, Cuy Sheffield, Head of Crypto, Visa, said via a press release, 

By operating a validator on Tempo, we’re extending Visa’s commitment to reliability, security, and trust into blockchain networks – supporting the development of stablecoin payment systems that meet the high operating standards our clients and partners expect.

The underlying concern

The flip side of the coin suggests that this move would diminish the decentralized spirit. This is because large corporations validating transactions would lead to transactions becoming less permissionless over time.

That said, besides Visa, Stripe, and Zodia Custody by Standard Chartered will act as “first external validators to join the Tempo network.”

Though this shows strong institutional involvement, it also raises concerns of a corporate-dominating blockchain ecosystem. 

That said, as a validator on Tempo, Visa would be receiving rewards in stablecoins. In fact, recently the digital payments platform doubled down on its stablecoin settlement pilot alongside reinforcing its strategic collaboration with Bridge.

Stablecoin market dynamics and more

This makes the timing of the launch interesting, as the stablecoin transaction volume has reached a record high of $74.1 trillion in just 12 months. The present data further suggest that Circle’s USDC is outperforming Tether’s USDT and other stablecoins.

At the same time, Visa’s stock price was trading at $311.37 at the time of publishing, after a hike of 0.64%. However, the year-to-date (YTD) data shows that the stock was down by over 11%.

Final Summary

• Visa’s move as a validator node on the Tempo Network strengthens transaction validation but also makes room for blockchain corporate monopolization. 
• The stablecoin market data suggests a surge in activity, but Visa’s YTD stock price raises eyebrows.