Token Transfer

A token transfer is the movement of a token, such as a stablecoin or other ERC-20 token, from one blockchain address to another. Unlike a transfer of a blockchain's native coin, a token transfer is an instruction to the token contract, which reduces the sender's balance and increases the recipient's in its own records. The sender signs the transaction with their private key and pays the network fee in the native coin, for example ether on Ethereum, which is why a wallet holding only tokens cannot send them. Once included in a block, the transfer is visible on a block explorer and generally cannot be reversed by the sender, so sending to a wrong or poisoned address usually means the funds are lost. Issuers of some tokens can freeze addresses and block transfers. In payments, token transfers are the basis of stablecoin transfers used for remittances and settlement.