I vaguely recall there was a hack to install it from USB but very few people ever did it, there was a long guide how to do it and it was a very fiddly process that removed any convenience one would think they were going to get!
You should be aware that trying install WinXP from USB is either a complete anacronism,or somewhat of an anacronism.
People weren't really doing that back then.People started installing from USB in windows 7 days.A good way to install XP(and here I don't mean by USB) is either from a CD,or by making a little partition on the HDD, puttin the setup files on there, and installing from there.
It may be possible to install WinXP from USB but i'm just saying you should know it's a ludicrously unusual non-standard thing2 do. One could boot off a boot disk then run the setup off the hard drive, or make the little partition bootable eg
sys c: and boot off there.
Something like this https://www.tech-recipes.com/rx/578/windows-xp-installing-from-harddrive/
And there is something about smartdrv that will make it much faster.
Again, none of this is installing WinXP from USB. But I can see from the comments you have made, you are really just looking to install it. If somebody can point you to how to install it from USB then great.
The involvement of USB I'd suggest is you can make a Win9X USB boot disk (in the past people may have done that or used a floppy), and you could have the installation files copied on there, that's the i386 directory on any windows xp cd. Then copy it from the USB, to your hard drive. And run the WinXP setup off the hard drive.
Here is a link saying how to do it, in a process that is not fiddly, or not that more involved than the more standard process of installing from a hard drive. Though it is installing from the USB. https://www.poweriso.com/tutorials/how-to-make-winxp-bootable-usb-drive.htm The key seems to be to run
E:\i386\winnt32.exe /syspart:C: /tempdrive:C: /makelocalsource.
There are many guides online, usually involving tools that didn't exist at the time. And claim to make it work without the kind of extreme file fiddling i've seen some a classic old guide do. It may be worth trying them
Note that some people are saying there is another issue that XP doesn't recognise SATA. If that's so, then XP would either give you a BSOD(a google of which would make it clear what the issue was), or XP would prompt you for them(I don't recall which but possibly the latter),
There is a situation regarding XP and SATA, thanks to keltari for his comment and some pictures on this page for reminding me https://hexus.net/tech/tech-explained/software/1420-installing-windows-xp-3rd-party-sataraid-driver/ , XP doesn't have SATA drivers and does prompts you to press F6 to install SCSI or RAID drivers. SATA is not SCSI and you may or may not want RAID or want to use RAID, but you push F6 there, to install your SATA driver.
Then you could use a usb floppy drive or you could just copy the files into the correct directory within i386, so that the setup finds them automatically. Some people here have mentioned "slipstreaming" and nlite.. IIRC slipstreaming is rebuilding an ISO, you don't need to as you have the i386 directory on (easily!) writable media, so you can manually add the driver file(s) just by copying them in.