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# Stablecoins on Tempo

Tempo’s native stablecoins use the TIP-20 token standard. An account can hold balances in multiple tokens, and your application uses the same interface to read balances and send payments for each one.

## Identify the stablecoin

Identify each asset by **its network and contract address**. Keep both alongside amounts in your application and payment records; use the name and symbol for display.

Use the [token list](https://tempo.xyz/developers/docs/quickstart/tokenlist) for addresses and display metadata. The [Assets directory](https://tempo.xyz/developers/docs/partners/stablecoins) introduces stablecoin issuers, and the [OUSD guide](https://tempo.xyz/developers/docs/guide/ousd) covers OUSD addresses and funding paths.

For development, use [Moderato testnet](https://tempo.xyz/developers/docs/quickstart/connection-details) and [faucet tokens](https://tempo.xyz/developers/docs/quickstart/faucet). The token list provides separate addresses for testnet and mainnet assets.

## Understand TIP-20 Tokens

TIP-20 extends ERC-20 with payment features built into Tempo. If you already work with ERC-20 tokens, the core operations are familiar:

| Operation | Use |
| --- | --- |
| Read an account’s balance | `balanceOf` |
| Send tokens from an account | `transfer` |
| Allow another address to spend tokens | `approve` |
| Spend an approved allowance | `transferFrom` |

TIP-20 also provides transfer memos, stablecoin fee payment, and policies that control token movement.

## Work with token amounts

TIP-20 tokens use **6 decimal places**. A balance of `1000000` base units represents `1` token; `12500000` represents `12.5` tokens.

Use integer base units when preparing transactions and convert them for display. With the TypeScript SDK, use Viem’s `parseUnits` and `formatUnits`:

```ts
import { formatUnits, parseUnits } from 'viem'

const amount = parseUnits('12.5', 6) // 12500000n
const displayAmount = formatUnits(amount, 6) // '12.5'
```

## Add references to payments

A TIP-20 transfer can include a **32-byte memo**. Use it to identify an invoice, order, or other record when reconciling payments. The memo appears in transfer events alongside the payment details.

See [Payment references](https://tempo.xyz/developers/docs/guide/payments/transfer-memos) for encoding memos and reading them from transfer events.

## Pay fees in stablecoins

Tempo has no native gas token. Transaction fees use supported USD-denominated TIP-20 tokens with sufficient fee liquidity. The payment token and fee token can differ, and your application can [sponsor fees](https://tempo.xyz/developers/docs/guide/payments/sponsor-user-fees) for its users.

See [Choose a fee token](https://tempo.xyz/developers/docs/guide/payments/pay-fees-in-any-stablecoin) for client configuration and [transaction fees](https://tempo.xyz/developers/docs/protocol/fees) for eligibility and conversion rules.

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## Token and account policies

A token’s transfer policy controls which addresses can send and receive it. Account owners can also choose which tokens and senders they accept. See [Control incoming payments](https://tempo.xyz/developers/docs/guide/payments/configure-receive-policies) to configure a receive policy and handle blocked payments.

[Send your first payment →](https://tempo.xyz/developers/docs/guide/payments/send-a-payment)

For contract interfaces and exact token behavior, read the [TIP-20 Specification](https://tempo.xyz/developers/docs/protocol/tip20/spec).