Circle Fully Ends Support for USDC on Tron Blockchain
Boston-based crypto firm Circle has announced its decision to cease support for its USDC token on the Tron blockchain network, citing alignment with efforts to maintain the trust, transparency, and safety of USDC.
This move comes amid growing regulatory attention faced by Tron’s founder in the United States.
Effective immediately, Circle will halt the minting of USDC tokens on Tron, marking a significant transition for the fast-growing platform commonly used for stablecoin transfers, knowing that stablecoins are digital tokens designed to maintain a constant value, typically backed by traditional currencies.
Although Circle did not specify the reason for this decision, it emphasized its ongoing assessment of blockchain suitability under its risk management framework. Institutional clients holding USDC on Tron have until February 2025 to transfer their tokens to other blockchains or redeem them for traditional currency.
Retail customers, on the other hand, are encouraged to transfer their USDC to other blockchains or redeem them at crypto exchanges and brokerages.
The decision to discontinue USDC support on Tron reflects Circle’s vision to position itself as a global player rather than solely a local entity. Despite facing initial challenges in onboarding banks and ensuring profitability, Circle’s move underscores its commitment to growth and adaptation to changing market dynamics, according to Reuters.
With USDC being the eighth-largest crypto token, Circle’s decision will impact approximately $335 million worth of USDC currently hosted on Tron. This move follows Circle’s termination of accounts held by Tron founder Justin Sun and his affiliated companies last year, amid regulatory concerns.
In response to previous allegations of providing services to Sun, Circle clarified that it ceased such collaborations in February 2023.
Sun has faced legal action from the Securities and Exchange Commission, alleging the offering of unregistered securities and manipulative trading, charges he absolutely denies.
Tron, meanwhile, has denied any association with groups designated as terror organizations, despite reports linking the platform to such activities.
The company maintains that it does not control the users of its technology.
