Circle, the US cryptocurrency firm, has announced its decision to cease support for its USDC token on the Tron blockchain network.
Stablecoins like USDC are digital assets designed to maintain a stable value, typically backed by traditional currencies.
With immediate effect, Circle will halt the creation of USDC tokens on Tron, a rapidly expanding blockchain platform widely utilised for stablecoin transactions. The company has not disclosed specific reasons for this move.
While institutional clients have until February 2025 to transfer USDC held on Tron to other blockchains or exchange tokens for traditional currency, retail customers can transfer USDC to alternative blockchains or redeem them through cryptocurrency exchanges and brokerage firms.
Tron, which aims to establish itself as the world’s foremost decentralized financial protocol, has expressed its determination to progress despite Circle’s decision.
A Tron spokesperson reiterated the platform’s vision for the future.
Circle’s decision to sever ties with Tron follows its termination of accounts linked to Tron’s Founder, Justin Sun, and his affiliated companies last year.
Sun faced legal action from the Securities and Exchange Commission (SEC) in 2023 for allegedly inflating trading volumes and selling Tron tokens as unregistered securities. Sun has denied the SEC charges, stating they lack merit.
“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,” said a Circle spokesperson.
The termination of USDC support on Tron primarily affects the Tron blockchain network itself rather than individual users or related businesses, according to a Circle spokesperson.
Currently, USDC boasts a circulation of approximately $28 billion, making it the eighth-largest cryptocurrency token globally.
Notably, USDC worth $335 million are hosted on the Tron network, as reported on Circle’s website.
In November last year, Reuters reported that Tron had surpassed Bitcoin as a preferred platform for crypto transfers linked to groups designated as terror organisations by various countries, including the United States and Israel, citing insights from financial crime experts and blockchain investigation specialists.