In a recent announcement, Circle, the issuer of the USD Coin (USDC), revealed its decision to discontinue support for the token on the Tron blockchain. This move, according to Circle, is aimed at maintaining the trust, transparency, and safety of USDC.
Circle stated in a blog post on February 20 that it would immediately cease minting USDC on the Tron blockchain. Additionally, the company plans to gradually phase out its support for the blockchain network.
Transition Period for Mint Customers
While the support for Tron-based USDC comes to an end, Circle assured its Circle Mint business customers of continued support for USD Coin transfers to other blockchains until February 2025.
Circle urged retail users and non-Circle customers holding Tron-based USDC to promptly move their assets to an exchange. This step will facilitate the transfer to a blockchain network where USDC is still actively supported.
Although Circle did not provide a specific reason for halting support for Tron, it emphasized the continuous evaluation of blockchain suitability as part of its risk management process. The decision reflects an enterprise-wide approach involving various functions within the company.
Circle’s Regulatory Battles
Circle’s move comes amid its recent filing for a public offering in the United States. With a market capitalization of nearly $28 billion, USDC stands as the second-largest stablecoin after Tether. However, Circle clarified previous claims linking it to Tron founder Justin Sun, refuting any ongoing integration with the Tron network since February 2023.
The decision also aligns with concerns raised by groups like the Campaign for Accountability regarding Tron’s involvement in alleged illicit activities. In March 2023, the U.S. Securities and Exchange Commission (SEC) sued Justin Sun and the Tron Foundation for offering unregistered securities and engaging in manipulative trading, allegations Sun vehemently denies.
