Tether ERC-20 and TRC-20: What are they and what's the difference
The world of digital assets is far from simple. People interested in the crypto market don't always possess the necessary knowledge. Even investors with some experience in this field don't always have a good understanding of cryptography. The lack of basic technical knowledge can lead to capital loss, so it's important to study the key aspects of the crypto industry. The most significant topics that a beginner should familiarise themselves with first are blockchain technology and the concept of token standards. We suggest exploring this concept using the example of the stablecoin Tether (USDT).
A Simple Explanation of Token Standards
A token standard contains a set of rules that govern digital currencies. In other words, a token standard defines the mechanism for creating, issuing, and deploying new tokens on a specific blockchain. Each standard's rules must be followed by a specific smart contract to perform certain tasks.
What is Tether
Tether (USDT) is a stablecoin aimed at protecting against the volatility of other cryptocurrencies. The stablecoin was created by the company Tether Limited. USDT was developed in 2014 and released in 2015. Its value is backed by reserves in US dollars, pegged to fiat currency at a 1:1 ratio. As of mid-2026, the token ranks third in overall crypto market capitalization, with a value of approximately $184–186 billion — making it the largest stablecoin in the world. Tether's popularity and high trading volume make it more convenient to use than many other stablecoins. USDT is available for purchase on most leading cryptocurrency exchanges.
Initially, the stablecoin was based on the Bitcoin blockchain, but it was soon integrated into other networks, which helped it become widely accessible.
USDT supports the following token standards:
- On the Ethereum blockchain – ERC-20
- On the TRON network – TRC-20
- BEP-2 is available on the Binance blockchain
- BEP-20 is supported by the Binance Smart Chain
Briefly About Blockchain
A blockchain is a public database that stores information in digital format. These ledgers are particularly popular in the world of cryptocurrencies because they're decentralised, eliminating the need for a trusted third party.
A blockchain consists of blocks that store information about each transaction, such as the addresses of the participants and the transaction amount. Personal data of wallet owners remains private, ensuring security.
Ethereum is a decentralised software platform based on blockchain technology. The Ethereum network has a native token, ETH. The blockchain uses ERC-20 standard tokens to create and issue smart contracts on the network. ERC stands for 'Ethereum Request for Comment'. The ERC-20 standard was introduced in 2015. Many well-known digital currencies are based on ERC-20, such as Maker (MKR), Basic Attention Token (BAT), Augur (REP), and OMG Network (OMG).
TRON is a decentralised digital platform based on blockchain technology with a native token, TRX. TRON is often compared to Ethereum because they're similar in structure. TRC-20 is a technical standard used for smart contracts on the TRON blockchain.
What is the difference between ERC-20 and TRC-20 USDT?
The sale of the stablecoin under the ERC-20 standard began in 2018. Integration into the Ethereum blockchain made USDT compatible with decentralised applications on the network. Additionally, it helped increase transaction speeds. Tether stablecoins make up a substantial share of total ERC-20 token supply.
Then, in 2019, USDT was integrated into the TRON network using the TRC-20 protocol.
Although the ERC-20 and TRC-20 standards are very similar in their main characteristics, the Tether stablecoin on the TRON network differs from USDT on the Ethereum network.
What is the difference between USDT ERC-20 and TRC-20?
The main difference between Tether stablecoins of different standards lies in the transaction fees. The Ethereum blockchain is characterised by lower data processing speed and generally higher transaction fees compared to TRON, though both networks' fees fluctuate with network congestion.
USDT is known as one of the most transacted crypto tokens, so the difference in fees across different blockchains is a crucial factor for investors. In terms of transaction fees, the TRON network is generally more advantageous for users as it typically has lower fees compared to Ethereum. Therefore, by choosing USDT of the TRC-20 standard, investors often pay less for cryptocurrency transactions.
One of the advantages of using ERC-20 tokens is the ability to exchange USDT for other coins of this standard. The most popular digital currencies of the ERC-20 protocol include Decentraland (MANA), Chainlink (LINK), and Uniswap (UNI). On the other hand, transactions involving Tether TRC-20 may require several additional steps to obtain the same tokens, resulting in extra costs and lost time for the investor.
Thus, the key differences between USDT ERC-20 and TRC-20 are:
- Transaction fees (on the TRON network, they're generally lower and are charged in the native TRX tokens; on the Ethereum blockchain, transaction fees are charged in ETH)
- Issuance protocol
- Transaction speed (transactions on the TRON blockchain are typically faster)
- Security (the Ethereum network has a longer track record and wider decentralization)
- Storage method (not all cryptocurrency wallets support TRC-20 standard tokens)
USDT TRC-20 tokens offer the same core features and benefits as ERC-20, with some exceptions: since the Ethereum blockchain is often more congested, this can lead to higher transaction fees. Because of this, TRON-based transfers have become increasingly popular among users, especially those dealing with stablecoins. USDT TRC-20 tokens generally feature fast transaction confirmations and low network fees.
FAQ
What is a USDT TRC-20 wallet?
A USDT TRC-20 wallet is a cryptocurrency wallet that supports Tether (USDT) tokens on the Tron blockchain (TRC-20).
Key points to note:
- TRC-20 is a token standard on the Tron blockchain. It generally provides faster and cheaper transactions compared to standards like ERC-20 on the Ethereum blockchain
- USDT TRC-20 is a version of the Tether stablecoin adapted for the TRON blockchain
- Various types of wallets can be used to store USDT TRC-20, including hardware, software, and online wallets
Cryptocurrency wallets are generally divided into a few broad categories: wallets built specifically for one blockchain (such as Bitcoin-only wallets), wallets built for a specific network's token standard (such as ERC-20-focused wallets), and multi-currency wallets that support several blockchains and token standards at once, including TRC-20.
Which wallets support TRC-20?
Support for TRC-20 tokens varies by wallet. Multi-currency wallets, TRON-native wallets, and several major hardware and mobile wallets support TRC-20 assets. When choosing a wallet, check its officially supported network and token list directly, since support can change over time — and consider factors like whether the wallet is custodial or non-custodial, its security track record, and how well it fits your intended use (everyday transfers vs. long-term storage).
How do I start using USDT on the TRC-20 network?
The general process is similar across most platforms that support TRC-20:
- Register on the platform and create an account
- Select the currency – USDT
- Choose the TRC-20 network when depositing or withdrawing
- Fund your account — make sure you have enough TRX in your wallet to cover transaction fees if you're sending from a self-custody wallet
- Locate your wallet address, which you'll need to receive crypto from others
What are BEP2 and BEP20?
BEP2 and BEP20 are two different token standards used on the Binance Chain and Binance Smart Chain networks, respectively.
What you need to know about BEP2:
- Network: Binance Chain (now known as BNB Beacon Chain)
- Purpose: used for native transactions on Binance Chain
- Features: BEP2 tokens are designed for fast and cheap asset transfers within the Binance ecosystem. They don't support smart contracts
What you need to know about BEP20:
- Network: Binance Smart Chain (now known as BNB Smart Chain)
- Purpose: used for smart contract transactions on Binance Smart Chain
- Features: BEP20 tokens are compatible with ERC-20 tokens on Ethereum, allowing them to be used in decentralised applications (dApps) and smart contracts
Thus, the main difference between the token standards is that BEP2 is used for native transactions on Binance Chain, while BEP20 is used for smart contracts on Binance Smart Chain.
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