Circle to End USDC Token Support on Tron Blockchain
Major Decision by Circle
Circle, a major U.S. crypto firm, has announced that it will no longer support its USDC token on the Tron blockchain network. This decision aligns with the company’s efforts to uphold the trust, transparency, and safety of the USDC token.
Immediate Termination of Support
This decision, effective immediately, means that Circle will cease minting USDC tokens on Tron. The Tron network, known for its rapid growth and widespread use in stablecoin transfers, has been facing regulatory challenges in the United States.
Reasons for the Decision
While the reason behind this move was not explicitly stated, Circle emphasized that it continuously evaluates the suitability of blockchains supporting USDC under its risk management framework.
Impact on Clients
Institutional clients are allowed to transfer their USDC tokens from Tron to other blockchains or redeem them for traditional currency until February 2025. Retail customers can also transfer USDC to other blockchains and redeem them at crypto exchanges and brokerages.
Tron’s Response
Tron’s vision is to become the world’s largest and most prosperous decentralized financial protocol. Despite this decision, Tron remains committed to advancing its platform.
Related Regulatory Issues
It’s noteworthy that Circle had terminated accounts held with it by Tron founder Justin Sun and his affiliated companies last year. Sun, a prominent crypto entrepreneur, is facing legal action from the SEC for allegedly engaging in activities that violate securities regulations.
USDC’s Position in the Market
With approximately $28 billion in circulation, USDC ranks as the eighth-largest crypto token. The decision to end USDC support on Tron affects tokens hosted on that blockchain, but Circle ensures a smooth transition for its clients.
Tron’s Controversies
Tron has attracted attention due to its association with crypto transfers linked to groups designated as terror organizations. However, Tron has denied any involvement with these groups and emphasized that it cannot control how its technology is utilized.
