What Is TRC20? Everything You Need to Know About Tether on TRON

The TRC20 token standard has become one of the most used formats for stablecoin transfers, particularly with the popularity of USDT on the TRON blockchain. Its widespread adoption is largely due to its speed and affordability, especially compared to older networks like Ethereum. In this article, we explore what TRC20 is, its technical structure, how to use it, and how to keep your tokens safe.

Key Takeaways

1. TRC20 is a token standard built specifically for the TRON blockchain.
2. It is widely used for stablecoin transfers, especially USDT.
3. TRC20 tokens offer fast transaction speeds and low fees.
4. TRC20 wallets include TronLink, Trust Wallet, and hardware wallets like Ledger.
5. Setting up a TRC20 wallet requires TRX tokens to pay for transaction resources.
6. TRC20 is not related to Ethereum and does not use Ethereum addresses.
7. Transactions and balances can be tracked using TronScan or wallet tools.

Table of Contents

What is TRC20?

History of TRC20

TRC 20 Standard

Which Wallet Supports TRC20?

How to Create a USDT TRC20 Wallet

Is USDT Backed by Real Money?

Who Owns USDT?

Advantages of TRC20

Disadvantages of TRC20

Can You Deposit with TRC20 in NordFX?

FAQ

🔗 What

What is TRC20?

TRC20 is a technical standard for smart contracts used to issue tokens on the TRON blockchain. It defines a set of functions and rules that developers must follow when creating a fungible token. These functions include checking an account’s balance, transferring tokens, approving others to spend on your behalf, and checking spending limits.

The TRC20 standard is similar to Ethereum’s ERC20 in terms of structure and design, but it runs entirely on the TRON network. One of the most widely used tokens on TRC20 is USDT, the stablecoin issued by Tether. When people refer to USDT TRC20, they mean Tether’s US dollar-pegged token operating under the TRC20 rules.

TRC20 tokens are designed to be used across the TRON ecosystem, which includes wallets, decentralized applications, exchanges, and more. Transactions on TRC20 are settled quickly and at a very low cost, which makes it attractive for peer-to-peer payments and crypto trading.

🔗 History

History of TRC20

The TRON blockchain was created by Justin Sun in 2017, with the goal of building a high-speed decentralized platform for content sharing and smart contracts. Initially, TRON used the Ethereum blockchain and the ERC20 token format. However, TRON launched its own independent network in 2018 and moved away from Ethereum.

Once TRON had its own blockchain, the developers introduced the TRC10 and TRC20 token standards. TRC10 was simpler and used for basic tokens, while TRC20 allowed for more advanced smart contract functionality. TRC20 quickly became the preferred format for more complex assets, especially stablecoins.

In March 2019, Tether launched USDT on the TRON network using the TRC20 standard. This was a major milestone that gave TRC20 widespread exposure. Since then, the volume of USDT transactions on TRC20 has grown rapidly. In fact, it has overtaken the number of transactions on Ethereum for USDT, largely due to the lower fees and faster confirmation times.

Today, TRC20 is a core part of the TRON ecosystem and is used for a wide range of financial applications, including remittances, crypto trading, and decentralized finance.

🔗 Standard

TRC‑20 Standard

The TRC20 token standard specifies the functions that all tokens must implement to be compatible with the TRON blockchain. These functions are written in Solidity, the same programming language used for Ethereum smart contracts.

The core TRC20 functions include:

1. totalSupply: Returns the total number of tokens in existence.
2. balanceOf: Shows the number of tokens held by a specific address.
3. transfer: Moves tokens from the sender’s address to another address.
4. approve: Allows another address to spend a specified amount of tokens on your behalf.
5. allowance: Returns the number of tokens that an address is allowed to spend from your account.
6. transferFrom: Lets an approved address transfer tokens from your account to someone else.

There are also optional functions like name, symbol, and decimals, which help wallets and exchanges display token information properly.

TRC20 tokens require energy and bandwidth to process transactions. These resources are part of the TRON network’s architecture. Users can obtain free bandwidth by freezing TRX (TRON’s native token), or they can pay a small amount of TRX for each transaction.

Comparison Table: TRC20 vs ERC20 vs BEP20

This table shows that TRC20 is better optimized for fast and cheap transactions, which explains its popularity for stablecoins like USDT.

🔗 Wallet

Which Wallet Supports TRC20?

Many popular cryptocurrency wallets support TRC20 tokens, especially USDT on the TRON network. Some of the most reliable and user-friendly options include:

TronLink: This is the official wallet developed for TRON. It works as a browser extension and a mobile app. It is similar to MetaMask but specifically built for the TRON blockchain. TronLink is highly compatible with dApps and lets you manage TRX and TRC20 tokens easily.

Trust Wallet: This is a mobile wallet that supports a wide range of blockchains, including TRON. Trust Wallet users can store, receive, and send TRC20 tokens like USDT. The app is beginner-friendly and widely used.

Ledger Hardware Wallet: If you want maximum security, Ledger devices like the Ledger Nano S or Nano X can store TRC20 tokens when connected to a TRON-compatible interface like TronLink or Ledger Live with third-party support.

Atomic Wallet and Exodus: These wallets support TRC20 tokens and are good alternatives for users who want multi-asset wallets with a simple interface.

To store USDT TRC20, make sure the wallet explicitly supports TRON-based tokens. TRC20 USDT addresses begin with the letter "T", while Ethereum-based ones start with "0x".

🔗 Create

How to Create a USDT TRC20 Wallet

Creating a USDT wallet that supports the TRC20 format is simple and can be done in a few steps. Here's how you can do it using a mobile wallet like Trust Wallet:

1. Download and install the Trust Wallet app on your device.
2. Open the app and create a new wallet by writing down and saving the recovery phrase.
3. After your wallet is set up, go to the list of supported assets and enable USDT (TRC20). Be sure to select the one listed under the TRON network.
4. You will also need some TRX tokens in the wallet to cover transaction fees. TRON does not charge gas fees like Ethereum, but it requires bandwidth and energy, which come from TRX.
5. Once your wallet has both USDT and a small amount of TRX, you can receive and send USDT TRC20.

Wallets like TronLink follow a similar process. Make sure to always double-check that you are using the correct version of USDT and that the address format is compatible with the TRON blockchain.

How to Secure TRC20 Tokens

Security is a critical part of using any cryptocurrency wallet. Here are the best ways to protect your TRC20 tokens:

Use trusted wallets only. Download your wallet app from official websites or verified app stores.

Backup your seed phrase. When you create a wallet, you will receive a recovery phrase. Write it down and store it offline in a secure place. Do not take a screenshot or store it in a file on your device.

Enable password protection and biometric login where available.

Add two-factor authentication if your wallet supports it.

Never share your private keys or recovery phrases with anyone.

Before receiving USDT, always verify that the address belongs to the TRON network. Do not use Ethereum or Binance Smart Chain addresses.

Double-check recipient addresses before sending tokens. Scammers sometimes trick users into copying incorrect wallet addresses.

For larger amounts, consider using a hardware wallet. This provides cold storage, which keeps your private keys offline and away from malware.

Is TRC20 Ethereum?

The answer is no. TRC20 is not part of the Ethereum blockchain. It is a completely separate token standard built for the TRON network. However, the TRC20 standard was inspired by Ethereum’s ERC20 format, so the function names and general architecture are similar.

TRC20 tokens cannot be used on Ethereum or any other blockchain without being converted through a bridge or wrapped token process. For example, if you want to move USDT from TRON to Ethereum, you must use a cross-chain service or a crypto exchange that supports multiple networks.

In terms of user experience, both ERC20 and TRC20 tokens appear similar in wallets. But the addresses, transaction fees, block explorers, and network confirmations are different. Always make sure you are using the correct blockchain for sending or receiving tokens.

How to Track My USDT TRC20 Wallet

Tracking your TRC20 wallet activity is easy and can be done in two main ways:

TronScan Explorer: TronScan is the official block explorer for the TRON network. You can visit the website, enter your TRC20 wallet address, and view all incoming and outgoing transactions. This includes time, amount, transaction hash, status, and more. It’s a powerful tool for transparency and verification.

Wallet App History: Most mobile and browser wallets also display your token balances and transaction history. For example, Trust Wallet shows the amount of USDT you hold, your last transaction, and the status of transfers. You can tap on each transaction to view more details.

It’s a good habit to check your wallet regularly and confirm all transactions. If you are sending or receiving funds from others, you can ask them to provide the transaction ID (also called a hash) to track it on TronScan.

Here’s an example of a typical transaction record:

These details help you stay informed and detect any unauthorized activity quickly.

🔗 Money

Is USDT Backed by Real Money?

The short answer is: partially. Tether, the company that issues USDT (Tether USD), claims that each token is backed by reserves. These reserves may include cash, short-term government securities like U.S. Treasury bills, commercial paper, certificates of deposit, and other financial assets.

In the early days of USDT, it was marketed as being backed 1-to-1 by U.S. dollars held in bank accounts. However, over the years, regulators and independent researchers raised concerns about the accuracy of this claim. In response, Tether began publishing periodic breakdowns of its reserve composition and also agreed to provide more transparency following investigations by regulatory bodies in the United States and other jurisdictions.

As of recent years, Tether has maintained that USDT is fully backed by assets, although not necessarily by physical U.S. dollars. The reserves may include cash equivalents, short-term debt instruments, and in some cases, secured loans or other investments.

It is important to understand that when you hold USDT, you are trusting that Tether Limited will honor the 1-to-1 peg when you redeem or convert tokens. This is different from holding cash in a bank account, which is often protected by deposit insurance. Tether does not offer such guarantees.

This means that although USDT is widely used and generally stable, it is not risk-free. Its stability is based on trust in the issuer, transparency of reserves, and continued demand on exchanges and trading platforms.

🔗 Owns

Who Owns USDT?

USDT is issued by a private company called Tether Limited. Tether is closely associated with a larger cryptocurrency exchange group known as iFinex, which also owns Bitfinex. The leadership and ownership structures of Tether and Bitfinex overlap, and the two entities have been the subject of regulatory scrutiny in the past.

Tether Limited operates from multiple jurisdictions but does not function as a traditional bank or financial institution. The company issues tokens on multiple blockchains including TRON (TRC20), Ethereum (ERC20), Solana, Binance Smart Chain (BEP20), and others. Each version of USDT is a representation of the same stablecoin, but it exists separately on each blockchain.

Although Tether Limited issues the tokens and controls the redemption process, once USDT is in circulation, it is used globally by millions of traders, businesses, and platforms. This includes crypto exchanges, payment providers, decentralized applications, and peer-to-peer trading communities.

Because Tether is not a public company and is not listed on any stock exchange, it is privately owned. Its financial reports and operations are not audited in the same way as public corporations, which means users must rely on voluntary disclosures and third-party reports when assessing the trustworthiness of the issuer.

🔗 Advantages

Advantages of TRC20

The TRC20 token standard has several advantages that have contributed to its rapid adoption, particularly for stablecoins like USDT.

Fast Transactions

One of the most significant benefits of using TRC20 tokens on the TRON network is transaction speed. Transfers usually confirm within a few seconds, which is far faster than many older networks such as Ethereum. This speed is beneficial for active traders and businesses that need fast settlements.

Low Fees

TRC20 transactions are known for their extremely low fees. Unlike Ethereum, which has experienced high gas costs especially during network congestion, TRON’s architecture allows users to transfer stablecoins like USDT for a fraction of a cent. In many cases, the fee is less than one U.S. dollar equivalent in TRX.

High Scalability

The TRON network was built to handle a high number of transactions per second. This makes TRC20 tokens ideal for high-volume applications, including exchanges and payment processors that need consistent and predictable performance.

Wide Wallet Support

TRC20 tokens are supported by many popular crypto wallets, including Trust Wallet, TronLink, and Ledger. This makes it easy for users to send, receive, and store their assets securely across different platforms.

Integration With DeFi and Exchanges

Many decentralized applications (dApps) on TRON support TRC20 tokens, and most major centralized exchanges accept TRC20 USDT deposits and withdrawals. This provides flexibility for users and businesses to move assets across different platforms and protocols.

🔗 Disadvantages

Disadvantages of TRC20

Despite its popularity and efficiency, TRC20 is not without its drawbacks. Understanding these limitations is important before using or investing in TRC20 tokens.

Centralization Concerns

The TRON network is more centralized compared to other blockchain networks like Bitcoin or Ethereum. It uses a delegated proof-of-stake consensus mechanism with a small number of validators, called Super Representatives. Critics argue that this makes TRON more vulnerable to control by a small group of entities.

Risk of Confusion With Other Formats

There are multiple formats of USDT, such as ERC20, BEP20, and TRC20. If a user accidentally sends USDT TRC20 to an address on another blockchain, the funds may be lost or unrecoverable. This issue is common among beginners who are not familiar with network differences.

Lower Adoption in Traditional Finance

Although TRC20 is widely used in the crypto community, it is less recognized in traditional financial systems and institutional settings. Ethereum-based tokens are often preferred for projects seeking regulatory approval or institutional partnerships.

Reliance on TRX for Fees

TRC20 users need a small amount of TRX in their wallet to pay for transaction resources. If a user runs out of TRX, they will not be able to send USDT until more TRX is added to the wallet. This is an extra step that can be inconvenient, especially for first-time users.

Limited Audits and Transparency

While the TRON network is open source and viewable on public block explorers, many TRC20 tokens—especially newer or less-known ones—do not undergo audits. This can expose users to smart contract vulnerabilities or fraud if they interact with unverified tokens.

🔗 Deposit

Can You Deposit with TRC20 in NordFX?

Yes, NordFX supports deposits in USDT using the TRC20 format. This means you can transfer your USDT from any compatible TRC20 wallet into your NordFX trading account.

To make a deposit, you need to log into your NordFX account and select the deposit option. When choosing the currency, select USDT and then pick the TRC20 network. The platform will provide you with a deposit address that starts with the letter T. Make sure to only send TRC20 tokens to this address, and ensure that you include a small amount of TRX in your wallet to cover the transaction fee.

After sending the tokens, the deposit will appear in your NordFX account once the required number of network confirmations is reached. The speed of TRON ensures that your funds arrive quickly, usually within a few minutes.

This method is especially useful for traders who want to avoid high transaction fees or long delays associated with other networks like Ethereum.

🔗 FAQ

Frequently Asked Questions

What is the difference between TRC20 and ERC20?

TRC20 is a token standard for the TRON blockchain, while ERC20 is a token standard for Ethereum. Both standards use similar functions and programming structures, but they operate on different networks with different fees, speeds, and security models.

Can I send TRC20 USDT to an Ethereum address?

No. TRC20 tokens can only be sent to TRON-compatible addresses, which begin with the letter T. Ethereum addresses begin with 0x. Sending TRC20 USDT to an Ethereum address will likely result in a permanent loss of funds.

How much TRX do I need to send USDT TRC20?

The exact amount varies depending on the transaction, but a small amount of TRX—usually less than one unit—is enough to cover fees. It is a good idea to keep at least 1 to 5 TRX in your wallet at all times if you are using TRC20 tokens.

Is USDT on TRC20 safe?

USDT on TRC20 is generally considered safe as long as you use reputable wallets and services. However, like all cryptocurrencies, it carries risks related to wallet security, phishing scams, and smart contract vulnerabilities. Using hardware wallets and verifying contract addresses can help reduce these risks.

Why is TRC20 cheaper than ERC20?

The TRON network uses a different consensus mechanism and architecture that allows for faster and cheaper transactions. Unlike Ethereum, which has limited capacity and high gas prices during busy periods, TRON was designed to support high volumes with low fees.

Can I use the same wallet for TRC20 and ERC20?

Some multi-chain wallets support both TRON and Ethereum, but they will generate separate addresses for each network. For example, Trust Wallet can store both ERC20 and TRC20 USDT, but you must make sure you choose the correct network before sending or receiving funds.

Is there a risk of using TRC20 with centralized exchanges?

Generally, no. Most major exchanges clearly indicate which network they support for deposits and withdrawals. As long as you follow the instructions and send tokens to the correct network, you should not face any issues. Always double-check the network before making a transfer.

Are TRC20 tokens anonymous?

TRC20 tokens are not inherently anonymous. All transactions on the TRON blockchain are public and can be viewed using block explorers. However, they do not include personal identity information unless the user links their wallet to a verified account on an exchange or other platform.

Can I recover TRC20 USDT if I sent it to the wrong network?

In most cases, no. If you send TRC20 tokens to an address on a different blockchain, such as Ethereum, the tokens will not arrive and may be lost permanently. Some exchanges may offer recovery services, but there is no guarantee. Always double-check the address and network before confirming a transfer.