Circle, the entity behind the USD Coin stablecoin pegged to the United States dollar, has declared its decision to withdraw support for the token on the Tron blockchain, citing alignment with efforts to maintain the trustworthiness, transparency, and safety of USDC.
Circle stated in X post on February 20 that they would cease minting USDC on TRON with immediate effect and gradually phase out support for the blockchain network. Despite this move, Circle assured that it would continue to facilitate USD Coin transfers to other blockchains for its Circle Mint business customers until February 2025.
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 urging retail users and non-Circle customers to transfer their Tron-based USDC to an exchange compatible with supported blockchain networks, Circle did not provide specific reasons for discontinuing Tron support, stating only that it continually evaluates the suitability of all blockchains as part of its risk management procedures. The decision to withdraw Tron support was described as the outcome of a comprehensive approach involving various departments across the company, including business organization and compliance.
In January, Circle filed for a public listing in the United States. The market capitalization of its USDC stablecoin is nearly $28 billion, making it the second-largest stablecoin after Tether USDT, which boasts a valuation of $97.5 billion, according to CoinGecko.
Circle previously refuted claims of providing services to Tron founder Justin Sun in November 2023, stating that it ceased such activities in February 2023. This clarification came after an ethics group wrote to U.S. Senators alleging that Circle’s integration with the Tron network compromised its integrity.
The Campaign for Accountability group highlighted Tron’s involvement in multiple international law enforcement actions related to significant transactions by alleged organized crime groups and sanctioned entities. In March 2023, the U.S. Securities and Exchange Commission filed a lawsuit against Sun and the Tron Foundation, accusing them of offering unregistered securities and engaging in manipulative trading, allegations which Sun has denied.
