Wallet Tag

Overview

How it works

Some exchanges and custodians use one blockchain address for many customers and require a destination tag, memo, message, or payment identifier. The address routes funds to the provider, while the tag tells its internal ledger which account to credit.

Omitting or entering the wrong tag can send assets to the correct provider without correct customer attribution. Recovery may require support, evidence, fees, or may be unavailable. Tags are network and provider specific and should never be assumed interchangeable.

Senders must verify the exact address, network, asset, and tag from the recipient’s current trusted instructions. Wallet interfaces should preserve the tag as a separate required field and warn when it is missing. Businesses need validation, status tracking, and reconciliation from blockchain receipt to internal credit. Saved contacts require updates when provider instructions change.

What matters in practice

Some networks require a destination tag, memo or payment identifier alongside a deposit address to route an incoming transfer to the correct customer in a shared wallet. The on-chain recipient alone may identify the service, not the user's balance record. Wallet interfaces should show a required tag prominently, validate its format and include it in payment instructions. A missing tag does not necessarily mean funds are destroyed, but recovery often requires support work and ownership evidence. Tags are chain-specific; do not paste them into incompatible address fields.

Related glossary concepts

Payment Identifier