USDT (Tether) is the most widely used stablecoin with the highest market capitalization, issued by the centralized company Tether. As of April 17, 2025, there are three primary types of USDT, each operating on different blockchain networks: Omni, ERC20, and TRC20. This guide explains their differences, security features, transaction speeds, and fee structures to help you choose the right USDT for your needs.
What Is USDT?
USDT is a stablecoin pegged 1:1 to the US dollar (1 USDT = 1 USD), issued by Tether Ltd. It operates on multiple blockchains, including Bitcoin (Omni), Ethereum (ERC20), and TRON (TRC20). Users can exchange USD for USDT via bank transfers or cryptocurrency exchanges.
Types of USDT Addresses
1. Omni USDT (Bitcoin Network)
- Protocol: Omni Layer (built atop Bitcoin’s blockchain).
- Address Format: Starts with "1" (e.g.,
1BvBMSE...). - Transaction Fees: Paid in BTC as miner fees (~0.0002 BTC per transfer).
Features:
- High security (leverages Bitcoin’s robust network).
- Slow transactions (same speed as Bitcoin).
- Each USDT transfer generates a tiny BTC transaction.
Best for: Large transfers where security is prioritized.
2. ERC20 USDT (Ethereum Network)
- Protocol: ERC-20 standard.
- Address Format: Starts with "0x" (e.g.,
0x742d35...). - Transaction Fees: Paid in ETH (Gas fees).
Features:
- Moderate speed (depends on Ethereum network congestion).
- Broader compatibility with DeFi apps.
Best for: Mid-sized transfers or Ethereum ecosystem use.
3. TRC20 USDT (TRON Network)
- Protocol: TRC-20 standard.
- Address Format: Starts with "T" (e.g.,
TNPeeXD...). - Transaction Fees: Free (sponsored by TRON’s high-throughput model).
Features:
- Fastest transactions (1500 TPS).
- Lower security (DPoS consensus with 27 supernodes).
Best for: Small, frequent transfers.
Key Differences Summary
| Feature | Omni USDT | ERC20 USDT | TRC20 USDT |
|---|---|---|---|
| Blockchain | Bitcoin | Ethereum | TRON |
| Fees | BTC | ETH (Gas) | Free |
| Speed | Slow (~10 mins) | Moderate | Fast (<1 min) |
| Security | High | Medium | Lower |
| Address Prefix | "1" | "0x" | "T" |
How to Avoid Mistakes
Always check the address format before transferring:
- Omni: "1..."
- ERC20: "0x..."
- TRC20: "T..."
- Exchanges may support multiple types—ensure you select the correct network during deposits/withdrawals.
👉 Learn how to securely store USDT
FAQs
Q1: Can I send Omni USDT to an ERC20 address?
No. Omni and ERC20 USDT are incompatible. Sending to the wrong address may result in permanent loss.
Q2: Which USDT type is cheapest for transfers?
TRC20 USDT (zero fees), followed by ERC20 (variable Gas fees), then Omni (BTC miner fees).
Q3: Why does Omni USDT require BTC for transfers?
The Omni Layer relies on Bitcoin’s blockchain for security, so BTC pays for transaction processing.
Q4: Is TRC20 USDT safe?
While fast, TRON’s DPoS consensus is less decentralized than Bitcoin’s PoW. Use TRC20 for small, time-sensitive transfers.
Q5: How do I know which USDT type I have?
Check the wallet address prefix: "1" (Omni), "0x" (ERC20), or "T" (TRC20).
Conclusion
- Omni USDT: Best for security-conscious users.
- ERC20 USDT: Ideal for Ethereum-based applications.
- TRC20 USDT: Optimal for fast, fee-free micropayments.
Always double-check addresses and network types to safeguard your assets!