Destination tag/Memo is an additional address feature necessary for identifying your recipient beyond the XRP/XLM wallet address on a centralized exchange or wallet.
Tokens like XRP/XLM use the destination tag technology to determine what is the actual individual account a transaction should be assigned and credited to. As most centralized solutions use one address for all users for these cryptocurrencies. Failure to include destination tag/memo when sending XRP/XLM to a centralized address would lead to loss of funds and it’s irreversible.
When is destination tag/memo required?
Follow the checklist below to decide whether a destination tag/memo is required for your recipient
- Ask your recipient whether is there a destination tag/memo for the XRP/XLM address
- Is the receiving address generated by a centralized or decentralized wallet? (The recipient would own the recovery phrase if it’s a decentralized wallet then a destination tag/memo is not required)
- If you are still unsure, we strongly advise you to send a small testing amount first to ensure your recipient is able to receive the crypto.
We will not be able to locate/reverse the funds if you fail to include the destination tag/memo when sending to a centralized wallet.