Circle, the US cryptocurrency firm, announced its decision
to terminate support for its USDC token on the Tron blockchain network. The
decision was revealed today (Wednesday).
Stablecoins like USDC are digital assets designed to
maintain a stable value, typically backed by traditional currencies. Effective
immediately, Circle will cease the minting of USDC tokens on Tron, a rapidly
growing blockchain platform widely used for stablecoin transfers. The company
did not provide specific reasons for its decision.
While institutional clients have until February 2025 to
transfer USDC held on Tron to other blockchains or redeem tokens for
traditional currency, retail customers can transfer USDC to alternative
blockchains or redeem them at crypto exchanges and brokerages.
Tron, which aims to establish itself as the world’s leading
decentralized financial protocol, expressed its commitment to advancing despite
Circle’s decision. A spokesperson for Tron reiterated the platform’s dedication
to progress and its vision for the future.
Circle’s decision to sever ties with Tron follows its
termination of accounts associated with Tron 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.
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
USDC’s Global Circulation: Insights into its Market Presence
The termination of USDC support on Tron primarily impacts
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 of the previous year, Reuters reported that Tron
had surpassed Bitcoin as a preferred platform for crypto transfers linked…
