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USDT Card Glossary

Ten core terms for understanding USDT virtual cards. Full 30-term glossary in Simplified Chinese at /glossary.

Stablecoin
USDT (Tether)
The 1:1 USD-pegged stablecoin issued by Tether Limited.

USDT is the largest stablecoin by circulation (~$118B Q1 2026). Each USDT is claimed to be backed by reserves audited quarterly by BDO Italia, primarily US short-term Treasuries (~80% of reserves). USDT is the core settlement asset for USDT virtual cards — users deposit USDT, the issuer converts it to fiat for spending.

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Regulation
KYC (Know Your Customer)
Identity verification process required by financial regulators at account opening.

KYC stems from anti-money-laundering (AML) regulation. For USDT cards there are three KYC tiers: (1) Full KYC — passport + address proof + video liveness, 1-3 days review (Crypto.com Visa, Wirex top tier); (2) Basic KYC — phone + email + simple identity check, 5-10 min (MPCard, Bybit, OKX); (3) No KYC — typically signals an unlicensed offshore issuer with significant compliance risk (see /en/risks/no-kyc).

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Network
TRC20
The token standard on the Tron blockchain used for ~60% of USDT in circulation.

TRC20 is Tron's analog of Ethereum's ERC20. As of May 2026, TRC20-USDT holds ~60% market share. Advantages: low fees ($1-2 per transfer outside congestion) and fast confirmation (~3 seconds). Drawbacks: Tron network sometimes congests, and node decentralization is lower than Ethereum. Most USDT cards support TRC20 as the primary deposit rail.

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Network
ERC20
The Ethereum token standard. ~28% of USDT lives on ERC20.

ERC20 is the original and most widely-recognized token standard. Institutional and compliance-sensitive flows prefer ERC20-USDT because Ethereum offers the highest decentralization. Drawback: gas fees range $3-15 per transfer in normal conditions and can spike past $30 during congestion. Most USDT cards support ERC20 deposits but small users are typically routed to TRC20.

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Regulation
MiCA (Markets in Crypto-Assets Regulation)
EU's comprehensive crypto-asset regulation framework, in force June 2024.

MiCA (EU Regulation 2023/1114) sets strict requirements on stablecoin issuers including EU member-state e-money licensing, 100% transparent auditable reserves, and user redemption guarantees. Tether has not obtained a MiCA license — as a result, several EU exchanges (Binance EU, Coinbase EU) have delisted USDT spot pairs. USDT-card issuance to EU residents is constrained as a result.

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Regulation
FATF Travel Rule
FATF Recommendation 16 requiring VASPs to transmit originator + beneficiary info.

The Travel Rule applies to virtual-asset transfers ≥$1,000 (FATF's 2025 Targeted Update). VASPs (Virtual Asset Service Providers) must collect and transmit originator and beneficiary information. As of mid-2025, 73% of 117 surveyed jurisdictions had passed implementing legislation. Licensed USDT-card issuers comply at deposit time; unlicensed offshore issuers do not.

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Card mechanics
Topup fee
The percentage fee charged when you move USDT onto the card.

Separate from per-transaction fees. Industry baseline: MPCard 0% (industry-unique), Bybit 0.65%, Wirex ~1%, RedotPay ~1.5%. Real total cost of using a card = topup fee + per-transaction fee, not just one. usdtcard.net's /calculator tool separates the two stages explicitly.

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Card mechanics
FX spread / per-transaction fee
The percentage taken on each card transaction.

For USDT cards, the per-transaction fee usually combines the issuer's markup over the Visa/Mastercard interbank rate with the USDT→USD conversion margin. Baseline: MPCard 0.60%, Bybit 0.65%, OKX 0.70%, Crypto.com 0.70%, Wirex 1.75%. For subscription-heavy users (ChatGPT, Claude, ads), per-transaction fee compounds and matters more than topup fee.

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Security
Self-custody wallet
A wallet where the user holds the private keys, not a third party.

MetaMask, Trust Wallet, and Ledger hardware wallets are self-custody. Some USDT cards (MetaMask Card, Ledger Crypto Life Card) use a self-custody model — funds stay in your wallet and are spent on-chain. This isolates issuer risk but every transaction triggers an on-chain operation and accumulates gas. Most USDT cards (MPCard, Bybit, Crypto.com) use a custodial model instead.

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Regulation
VASP (Virtual Asset Service Provider)
FATF's defined category for crypto businesses subject to AML licensing.

VASPs include exchanges, custodial wallets, and card issuers. Multiple jurisdictions (Hong Kong, Singapore, Dubai, EU) require VASP-specific licenses. USDT card issuers hold the corresponding regime's license: Bybit holds Dubai VARA; Crypto.com holds Singapore MAS + Maltese VFAA; MPCard's Hong Kong subsidiary holds MSO (a different regime, not VASP but parallel).

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