The stablecoin issuer from the U.S. announced it’s stopping the creation of USDC on the Tron network to keep USDC trustworthy.
Circle, the company behind the USD Coin (USDC), a stablecoin pegged to the U.S. dollar, has decided to stop supporting USDC on the Tron blockchain. They made this choice to maintain the trustworthiness, transparency, and safety of USDC.
Circle Ceases USDC Support on TRON Blockchain
In a blog post dated February 20, Circle announced the immediate discontinuation of minting USDC on the TRON blockchain. The company stated its intention to gradually phase out support for the TRON network.
Despite this decision, Circle assured continued support for USDC transfers to other blockchains for its “Circle Mint” business customers until February 2025.
Circle advised retail users and non-Circle customers to transfer their TRON-based USDC to an exchange, facilitating its transition to a blockchain network where USDC remains supported.
1/ We are discontinuing USDC on the TRON blockchain in a phased transition. Effective immediately, we will no longer mint USDC on TRON. Transfers and redemptions of USDC on TRON will continue to operate normally through February 2025. Read the details: https://t.co/kw9A3ZUpWH
— Circle (@circle) February 21, 2024
While no specific reason was provided for terminating support for TRON, Circle mentioned ongoing evaluations of blockchain suitability as part of its risk management process.
The company emphasized that the withdrawal of TRON support was the outcome of a comprehensive approach involving various departments, including business, compliance, and other organizational functions.
Circle’s Path to Going Public and USDC’s Market Position
Last month, Circle initiated the process of going public in the United States. Their USD Coin (USDC) stablecoin holds a substantial market capitalization of nearly $28 billion, making it the second-largest stablecoin after Tether (USDT), which boasts a valuation of $97.5 billion, according to CoinGecko data.
In November, Circle refuted allegations suggesting its association with Tron founder Justin Sun. This response followed claims made by an ethics group to Congress, asserting that Circle had not provided services to Sun since February 2023. The ethics group, Campaign for Accountability, highlighted concerns about Circle’s integration with the Tron network, citing Tron’s involvement in international law enforcement actions related to significant transactions by alleged organized crime groups and sanctioned entities.
The Securities and Exchange Commission (SEC) filed a lawsuit against Sun and the Tron Foundation in March 2023, alleging the offering of unregistered securities and manipulative trading practices. Sun has denied these allegations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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