Tempo's TIP-20 Standard: A New Step Forward in Blockchain Payments

Stripe and Paradigm have just announced a new token standard called TIP-20, optimized for the payment ecosystem on the Tempo blockchain that these two companies are jointly developing. This is a significant step forward in addressing the challenges of applying stablecoins to real-world transactions.

TIP-20 built on the existing ERC-20 platform

The TIP-20 standard is developed based on the proven ERC-20 model on Ethereum and compatible EVM networks. This approach ensures that Tempo can interact with existing systems without disruption, while also opening up scalability to other platforms.

However, TIP-20 is not just a copy of ERC-20. The new standard is equipped with additional features specifically designed for payments, including the ability to add notes in transfer transactions, compliance control tools, and features supporting reward distribution.

Meeting the needs of both operators and regulators

A notable advantage of TIP-20 is that it provides tools for issuing stablecoins tailored to specific payment use cases. This allows issuers to be flexible in meeting operational requirements and legal compliance from various stakeholders.

Currently, on the Tempo network, any TIP-20 stablecoin valued in USD can be used to pay transaction fees. This creates a level playing field for payment applications and minimizes entry barriers for developers looking to integrate.

Future: Expanding support for stablecoins

According to plans, Tempo will expand this scope by allowing transaction fee payments with stablecoins other than USD in the next phase. This move will enhance the system’s flexibility and accessibility, especially for international markets where local stablecoins are in higher demand.

With TIP-20, Stripe and Paradigm are building the foundation for blockchain to become an essential part of the global payment infrastructure.