What is an XRP Destination Tag or Memo?

Cryptocurrency transactions demand precision—especially when sending funds across different networks. One small mistake, like omitting a required piece of information, can result in delayed, lost, or uncredited deposits. While cryptocurrencies like Bitcoin and Ethereum use unique wallet addresses for each user, others such as XRP, BNB, and ATOM operate differently. Many exchanges and wallets use a shared deposit address for these coins, which means an additional identifier—called a destination tag or memo—is essential to ensure your funds reach the correct account.

In this comprehensive guide, we’ll explore what destination tags and memos are, why they’re crucial for certain cryptocurrencies, and how to find them on popular platforms. We’ll also cover the risks of sending without one and provide actionable steps to avoid common pitfalls.

👉 Learn how to securely send and receive crypto with the right transaction details.

Understanding Destination Tags and Memos

A memo (also known as a destination tag) is a unique alphanumeric or numeric code used to identify the recipient when sending cryptocurrencies to a shared wallet address. It typically appears alongside the main wallet address and can range from 6 to over 20 characters in length.

These identifiers are required by blockchains that support shared addresses—meaning multiple users deposit funds to the same public address. Without a memo or destination tag, the receiving platform cannot determine which user initiated the transaction, potentially leading to lost funds.

For example:

• A 6–12 digit number is common for XRP and BNB.
• A text-based message may be used for XLM or HBAR.

Memos serve two primary purposes:

1. User identification on centralized exchanges or custodial wallets.
2. Transaction tracking within networks that support multi-user deposits.

Always verify whether your chosen cryptocurrency requires a memo before initiating a transfer. Sending without one—when required—can result in irreversible consequences.

Why Is a Destination Tag Required for XRP?

Ripple (XRP) is one of the most widely used cryptocurrencies that mandates a destination tag when depositing to exchanges or custodial wallets. Since most platforms do not generate unique XRP addresses for each user, they rely on destination tags to distinguish between account holders.

Think of it this way:
If the wallet address is the building number, the destination tag is the apartment number. Without specifying the apartment, your package (funds) arrives at the building but never reaches you.

Failing to include a correct destination tag when sending XRP can lead to:

• Funds not appearing in your account.
• Extended delays while support investigates.
• Permanent loss if the receiving platform cannot trace the transaction.

To prevent this, always obtain your personal destination tag from the exchange or wallet you're using before sending XRP.

👉 Ensure your next crypto transfer includes all required identifiers—avoid costly mistakes.

Cryptocurrencies That Require Memos or Destination Tags

Not all digital assets require memos, but several major ones do—especially those built on networks supporting shared addresses. Below is a list of key cryptocurrencies that commonly require memos or destination tags:

Ripple (XRP)

• Purpose: Identifies individual users on exchanges using a shared XRP deposit address.
• Format: Numeric only (e.g., 12345678).
• Critical?: Yes—omission often leads to lost funds.

Binance Coin (BNB) – Binance Chain (BEP-2)

• Purpose: Ensures accurate crediting on Binance and other platforms using BNB Beacon Chain.
• Format: Numeric memo (e.g., 98765432).
• Note: Not required for BEP-20 transfers.

Cosmos (ATOM)

• Purpose: Routes deposits to the correct user on exchanges.
• Format: Numeric or alphanumeric (e.g., 11223344).
• Used on: Binance, Kraken, KuCoin, and more.

Stellar (XLM)

• Purpose: Distinguishes users sharing a single wallet address.
• Format: Text or number (e.g., user123 or 987654321).

EOS

• Purpose: Directs incoming EOS to the correct account within a shared system.
• Format: Alphanumeric string (e.g., memo123456).

Hedera Hashgraph (HBAR)

• Purpose: Used primarily for exchange deposits.
• Format: Free-form text or ID (e.g., tx for user 1001).

⚠️ Important: Never assume a memo is optional. Always check the deposit instructions provided by your wallet or exchange.

Frequently Asked Questions (FAQ)

How do I find my XRP destination tag on Trust Wallet?

Finding your XRP destination tag in Trust Wallet is simple:

1. Open the Trust Wallet app and log in.
2. Navigate to your portfolio and select XRP.
3. Tap the “Receive” button.
4. You’ll see both your XRP wallet address and the Destination Tag below it.
5. Copy the tag carefully and keep it safe for future transactions.

Note: Trust Wallet generates a unique destination tag for each user—do not share it publicly.

How do I locate my XRP destination tag on Binance?

To retrieve your XRP destination tag on Binance:

1. Log in to your Binance account via app or web.
2. Go to Wallet > Deposit (mobile) or Fiat and Spot > Deposit (desktop).
3. Search for XRP and select it.
4. Choose the network (ensure it's XRPL).
5. Your deposit address and destination tag will appear—copy both accurately.

✅ Always double-check that you're using the correct network and tag before confirming any transaction.

What happens if I send XRP without a destination tag?

If you send XRP to an exchange or service that requires a destination tag—but omit it—your funds may not be credited to your account. While the transaction itself will succeed on the blockchain, the receiving platform won’t know which user sent it.

Consequences include:

• Funds stuck in limbo within the exchange’s wallet.
• Need to contact customer support with full transaction details.
• Possible recovery fees imposed by the platform.
• Risk of permanent loss if no record exists.

Always verify memo requirements before sending. When in doubt, make a small test transaction first.

Can I reuse my destination tag?

Yes. Your destination tag is usually permanent for a given platform and coin. Once assigned, you can reuse it for all future deposits to that same account.

However, never use someone else’s tag, and avoid reusing tags across different exchanges or wallets.

Is a memo the same as a destination tag?

Essentially, yes. The terms are often used interchangeably:

• "Destination tag" is typically used for XRP.
• "Memo" is used more broadly across other chains like BNB, ATOM, and XLM.

Both serve the same function: identifying the recipient in a shared-address environment.

Do I need a memo when withdrawing from an exchange?

Yes—if you're withdrawing to a wallet or service that uses shared addresses, you must include the correct memo/tag provided by the recipient. If you're sending to your own private wallet with a unique address (like most non-custodial wallets), a memo is usually not needed.

Always confirm with the receiving platform’s deposit guidelines.

Final Tips for Safe Crypto Transfers

1. Always verify network compatibility – Sending XRP over XRPL but selecting BEP-20 will result in loss.
2. Copy-paste carefully – Use clipboard functions instead of manual typing.
3. Test with small amounts first – Especially when sending to new platforms.
4. Save your transaction ID – Keep records of hash, amount, time, and address.
5. Contact support early – If something goes wrong, act quickly with full details.

👉 Get started with secure, fast, and reliable crypto transactions today.

By understanding the role of destination tags and memos, you significantly reduce the risk of losing funds during transfers. Whether you're dealing with XRP, ATOM, or BNB, taking a few extra seconds to include the correct identifier can save hours—or even weeks—of recovery efforts. Stay informed, stay cautious, and transact confidently.