# What is USDT?

> Tether also known as USDT is a stablecoin launched in 2014 Its value is pegged to that of the US dollar      If you require assistance please reach out to u

Source: https://customersupport.xapo.com/en_us/what-is-usdt-BkSsQ2Wj6

Last updated: 2025-08-20T09:31:29.804Z

**What is USDT (Tehter)?**

USDT, or Tether, is the largest **stablecoin** in the cryptocurrency market. A stablecoin is a type of cryptocurrency designed to maintain a stable value relative to a "stable" asset, such as the US Dollar. In USDT's case, it aims to maintain a 1:1 peg with the US Dollar, meaning 1 USDT is intended to always be worth $1 USD. 

**What is USDT TRC20?**

USDT TRC20 is a version of Tether (USDT) that operates on the **Tron blockchain**. It's a different token standard than the USDT ERC20, which operates on the Ethereum blockchain. Both are USDT, a stablecoin pegged to the US dollar, but they exist on different networks. The Xapo Bank app supports USDT deposits via Tron network or Ethereum network. 

**What is the difference between USDT on the Tron network (TRC20) and USDT on the Ethereum network (ERC20)?**

While both TRC20 USDT and ERC20 USDT represent the same stablecoin (Tether pegged to the USD), they operate on different blockchain networks, leading to key differences:

**Transaction Fees:**

*   **USDT on Tron** transactions generally have **low fees** due to Tron's network design.
    
*   **USDT on Ethereum** transactions can incur **higher fees** (known as "gas fees"), especially during periods of high congestion on the Ethereum network.
    

**Transaction Speed:**

*   **USDT on Tron** transactions are typically **faster**, often confirming within a few minutes, thanks to Tron's higher transaction throughput.
    
*   **USDT on Ethereum**  transactions can be **slower**, taking several minutes to confirm, and can experience further delays during high network activity.  
      
    **It is critical to ensure the network type matches the address you are sending to, as sending to the wrong network will result in permanent loss of funds.**  
      
    

**Will the Xapo Bank app still support USDT ERC20 deposits?  
**

Yes, absolutely! We will continue to support USDT deposits via the Ethereum network (ERC20). You now have the option to choose between TRC20 and ERC20 for your USDT deposits.

**What is the difference between my USDT on Tron and USDT on Ethereum deposit addresses?**

Your USDT on Ethereum deposit address typically starts with "0x", while your new USDT on Tron deposit address will typically start with "T". Always double-check that you are sending to the correct network address.

**Are there any fees for depositing USDT TRC20 with the Xapo Bank app?**

The Xapo Bank app does not charge fees for receiving USDT deposits. However, you will be responsible for any transaction fees (gas fees) charged by the Tron network, which are typically very low.

**What is the minimum USDT on Tron deposit amount?**

It’s USDT 5. Deposits below this amount may be considered as a dust payment from our partner and the funds may not be credited to your USD wallet

**How long do USDT TRC20 deposits take to reflect in my account?**

USDT TRC20 deposits are generally faster than ERC20 deposits. While times can vary depending on network congestion, you can typically expect your deposit to reflect within a few minutes after the transaction is confirmed on the Tron blockchain.

**Why is the Xapo Bank app adding support for USDT TRC20 deposits?**

We're constantly working to improve our services and offer more convenient options for our members. Adding USDT TRC20 deposits provides several benefits:

*   **Lower Transaction Fees:** TRC20 transactions typically have lower fees compared to ERC20 transactions, especially during times of network congestion on Ethereum.
    
*   **Faster Transaction Speeds:** The Tron network is known for its high transaction throughput and faster confirmation times, meaning your USDT deposits could arrive quicker.
    
*   **Increased Flexibility:** This gives you more choice in how you deposit USDT to your Xapo Bank account.
    

  

\*Cryptoasset services are provided by Xapo VASP Limited – regulated by the GFSC – and currently unregulated in the UK.

If you require assistance, please reach out to us via in-app chat or email [support@xapo.com](mailto:support@xapo.com). We would be happy to help.