Stripe and Paradigm jointly launched a new token standard—TIP-20—for their payment public chain Tempo. The emergence of this new standard means that stablecoins and payment applications now have a dedicated technical specification.

From a technical perspective, TIP-20 is built on the Ethereum ERC-20 standard and is fully compatible with existing ecosystems. But this is not just a simple copy; it has been specifically extended for payment scenarios.

What exactly has been added? First is the transfer memo feature—each transaction can include descriptive information, which is especially useful for B2B payments and corporate transfers. Second is the compliance control module, allowing token issuers to flexibly set restrictions based on different regional regulatory requirements. Lastly, there is a reward distribution mechanism to incentivize specific behaviors or user participation.

The benefit of this approach is that it maintains compatibility with ERC-20, so existing wallets and tools can support it seamlessly, while customized features enhance the usability and compliance of payment applications. For stablecoin projects, this standard provides a relatively clear technical pathway.