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The XRP Ledger destination tag, explained: why exchanges ask for it

Destination tag, source tag, RequireDest: what they are, why a shared exchange address needs them, and what to check before sending. From the official documentation. Educational content.

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Data Analytic Investments
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The XRP Ledger destination tag, explained: why exchanges ask for it

Many exchanges and services use one XRP Ledger address for thousands of customers. How do they know whose payment arrived? With a number attached to the payment: the destination tag.

What it is

According to the official XRP Ledger documentation:

  • A destination tag identifies the intended recipient behind a shared address — for example, which customer an exchange should credit.
  • A source tag identifies the sender, so that a payment can be returned: the source tag of the incoming payment is used as the destination tag of the return payment.
  • Both are 32-bit unsigned integers: whole numbers, no letters.
  • They have no direct on-ledger effect; they tell the receiving service's own systems how to process the payment.

Why it matters

If you send XRP to an exchange without the tag it gave you, the payment reaches the address, but the service may not be able to tell that it is yours. Getting it credited then takes a support request.

The owner of an address can switch on the RequireDest setting. Then the ledger rejects payments that arrive without a destination tag, and the sender can resend with the correct one.

Before you send

  1. Copy the address and the tag together, from the same screen of the receiving service.
  2. Check whether a tag is needed at all. A personal wallet usually does not ask for one.
  3. If you are unsure, send a small test amount first.

Where we use the ledger

Our timestamps are written into the ledger as transaction memos. How the transaction works, field by field. · Why a new wallet needs 1 XRP

DAS Proof writes a file's fingerprint (SHA-256) into a public XRP Ledger transaction; the file itself never leaves your device. The timestamp shows the file existed in exactly this form no later than a given moment — it does not establish authorship or ownership. Anyone can verify it, free: dataanalyticsystem.com/proof/verify

More: All our XRP Ledger tools

Educational content. Not investment advice.

Explore Topics

#XRP Ledger#destination tag#XRPL#education
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This article is a companion piece to the book.

RIPPLE — the book

An Unofficial Documentary Study of Ripple and the XRP Ledger

22 chapters · every claim with a named source · numbered first edition · $29