HomeCryptocurrencyCircle to stop backing USDC on Tron blockchain, focusing on other networks...

Circle to stop backing USDC on Tron blockchain, focusing on other networks for stablecoin support.

Crypto Firm Circle to End Support for USDC Stablecoin on Tron Blockchain

Crypto Firm Circle to End Support for USDC on Tron Blockchain

Major U.S. crypto firm Circle is set to terminate its support for the USDC token on the Tron blockchain network. This decision aligns with the company’s commitment to ensuring that USDC remains trusted, transparent, and safe. The move was announced by the Boston-based Circle in a blog post on Wednesday.

Reason for the Decision

Circle did not provide a specific reason for its decision but stated that under its risk management framework, it is continually assessing the suitability of blockchains that support USDC, the second-largest stablecoin after Tether.

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Transition Period for Users

Effective immediately, Circle will no longer mint USDC tokens on Tron. However, institutional clients can transfer USDC held on Tron to other blockchains or redeem the tokens for traditional currency until February 2025. Retail customers can also transfer USDC to other blockchains and redeem USDC at crypto exchanges and brokerages.

Tron’s Response

Tron, the fast-growing platform widely used for transferring stablecoins, aims to become the world’s largest and most prosperous decentralized financial protocol. A Tron spokesperson expressed the platform’s commitment to moving forward despite the change.

Legal Issues and Market Impact

Circle’s move comes as Tron’s founder, Justin Sun, faces regulatory problems in the United States. Sun was sued by the Securities and Exchange Commission for allegedly inflating trading volumes and selling Tron tokens as an unregistered security. With approximately $28 billion in circulation, USDC is the eighth-largest crypto token, and $335 million worth of USDC is hosted on Tron, according to Circle’s website.

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Controversy Surrounding Tron

In November, reports emerged that Tron had overtaken Ethereum as a platform for crypto transfers associated with groups designated as terror organizations by various countries. In response, a Tron spokesperson stated that the platform does not have control over those using its technology and is not linked to the identified groups.

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