one, a major stablecoin issuer, announced its decision to immediately cease issuance of USD Coin (USDC) on the Tron blockchain. According to Circle, this move is part of its efforts to maintain USDC’s trust, transparency, and security.
Conversion Plan for Tron’s USDC Holders
Effective immediately, Circle will no longer issue USDC on the Tron network and will gradually phase out support for the blockchain. However, the company guarantees continued support for Circle Mint business customers transferring their USDC to other blockchains until February 2025. Circle urges retail users and non-Circle customers holding TRON-based USDC to transfer their assets in exchange for migration to a supported blockchain network. .
1/ Discontinue USDC on the TRON blockchain through a phased transition. Effective immediately, USDC will no longer be issued by TRON. USDC transfers and redemptions on TRON will continue to function normally until February 2025. For more information, please visit https://t.co/kw9A3ZUpWH.
— Circle (@circle) February 21, 2024
Blockchain suitability assessment
Circle did not specify the exact reason for discontinuing support for Tron, but emphasized that this decision is part of an ongoing risk management process that continuously evaluates the suitability of all blockchains. The move to discontinue support for Tron was the result of a company-wide assessment involving various organizational functions within Circle.
Last month, Circle filed for an initial public offering (IPO) in the United States. With a market capitalization of nearly $28 billion, the USDC stablecoin is the second-largest stablecoin after Tether (USDT), which is valued at $97.5 billion, according to CoinGecko data.
Last November, Circle refuted claims that it had provided services to Tron founder Justin Sun since February 2023, following claims from ethics groups that integration with the Tron network compromised its integrity. The Campaign for Accountability cited Tron’s links to international law enforcement actions involving significant transactions by suspected organized crime groups and sanctioned entities.
The U.S. Securities and Exchange Commission (SEC) sued Sun and the Tron Foundation in March 2023, accusing them of offering unregistered securities and engaging in manipulative trading. However, Sun denies these claims.
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