Why does USDT exist in two versions: understanding TRC20 and ERC20

Two standards of the same coin: what’s the point?

When you first encounter USDT in your wallet, confusion often arises — why are there different options labeled Ethereum and Tron? This is not an error and not two different tokens. It’s the same stablecoin USDT issued on different blockchain networks. Conceptually, it’s similar to a bank issuing dollars in different countries — the currency is the same, but the delivery system differs.

What is TRC20 and how is it related to Tron?

TRC20 is a token standard on the Tron blockchain created by Tether. When you send USDT TRC20, the transaction goes through the Tron network. The main advantage of this option is significantly lower fees compared to alternative systems. That’s why most traders and investors prefer this standard for transfers between wallets and platforms.

ERC20: Ethereum network standard

The second version of USDT uses the Ethereum network and is called USDT ERC20. Ethereum is one of the largest blockchains with its own ecosystem of applications. USDT on the Ethereum network is integrated into this ecosystem, but transaction costs are higher due to network congestion and more complex architecture.

Key differences between the two standards

The main difference lies in the fee costs and transaction speed. TRC20 provides fast and inexpensive transfers, making it ideal for everyday exchange operations. ERC20 is more suitable for those working deeply within the Ethereum ecosystem or integrating USDT with smart contracts on this platform.

To recognize which type of USDT you have, look at the logos — each standard has its own visual identifier. Always verify that the network you select for transfer matches the address to which you are sending tokens before proceeding.