Circle has announced the discontinuation of USDC support on the Tron blockchain, citing ongoing risk assessments and a company-wide commitment to regulatory compliance.
Circle’s Decision and Explanation: Circle, the issuer of USD Coin (USDC), has revealed its decision to halt support for the stablecoin on the Tron blockchain. This move, detailed in a blog post on February 20, represents a strategic shift for Circle in ensuring the integrity and safety of USDC. According to Circle, this decision is in line with its dedication to maintaining USDC as a trustworthy and secure digital dollar.
We are discontinuing support for USDC on the TRON blockchain in a phased transition. Effective immediately, we will no longer mint USDC on TRON.
Circle
Company-Wide Approach: While specifics were not provided, Circle emphasized its continuous evaluation of blockchain networks supporting USDC within its risk management framework. The decision to withdraw USDC support from Tron followed a thorough assessment involving various departments within Circle. This move underscores Circle’s commitment to preserving USDC’s reputation as a regulated digital dollar on the internet and is part of a broader company-wide initiative to uphold USDC’s integrity.
Transition Plan and Timeline: Circle outlined a phased transition plan, indicating an immediate halt to minting USDC on the Tron blockchain. However, Circle assured its Circle Mint business customers of continued USDC transfer support to other blockchains until February 2025. Additionally, Circle advised retail users and non-Circle customers holding Tron-based USDC to transfer their assets to exchanges supporting USDC on alternative blockchains.
Market Impact and Context: USDC, the eighth-largest cryptocurrency by market capitalization, holds a significant position in the stablecoin market, with a market capitalization nearing $28 billion. Tron currently hosts USDC worth $335 million, as per Circle’s data. Circle’s decision to withdraw support from Tron coincides with its filing for public listing in the United States in January. Allegations linking Circle’s services to Tron founder Justin Sun have surfaced, with concerns raised by the SEC regarding Tron’s involvement in international law enforcement actions and its association with designated terror organizations. Circle clarified that it ceased providing services to Tron in February 2023 in response to claims made by the Campaign for Accountability group.
Disclaimer: This article is provided for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.
