iReturn‑path safety
Exchanges and custodians often need to send funds back to where they came from. Shielded inputs make that impossible, so a TEX address tells the sender to spend only transparent UTXOs — leaving a source address to refund.
Transparent‑source‑only addresses
A TEX address carries the same 20‑byte validating key hash as its t1 counterpart — only the wrapper changes. The unfamiliar bech32m form is the point: old wallets can't parse it, so they can't quietly pay it from a shielded pool.
Everything below is computed locally. No address ever leaves this page.
The 20 bytes both encodings agree on. Base58Check and bech32m are just two envelopes around this.
Exchanges and custodians often need to send funds back to where they came from. Shielded inputs make that impossible, so a TEX address tells the sender to spend only transparent UTXOs — leaving a source address to refund.
Paying a TEX address from a shielded balance takes two steps: unshield to an ephemeral transparent address you control, then spend from there to the destination.
Only t1 and tm addresses have a TEX form. A t3 script‑hash address is rejected here for the same reason ZIP‑320 skips it — it isn't needed.
Nothing on chain enforces any of this, and a payment to a TEX address is indistinguishable from one to the underlying P2PKH address. A sender that ignores the signal risks the recipient's funds.