Circle, the issuer of the popular USD Coin (USDC) stablecoin, announced on February 20 that it will be discontinuing support for USDC on the Tron blockchain.
Circle, the issuer of the popular USD Coin (USDC) stablecoin, announced on February 20 that it will be discontinuing support for USDC on the Tron blockchain. This decision, according to Circle, is part of their ongoing efforts to ensure "USDC remains trusted, transparent, and safe."
Effective immediately, Circle will no longer mint new USDC tokens on Tron. However, they will continue to support existing USDC transfers for their "Circle Mint" business customers until February 2025, allowing them to move their holdings to other blockchains.
For retail users, the blog post stated that they may use “hundreds of global services available, including retail exchanges, brokerages and on/off-ramp providers, to transfer USDC between blockchains or redeem their USDC for fiat currency.”
Circle did not explicitly state the reason for dropping Tron support, but mentioned their regular assessment of all blockchains as part of their risk management strategies. They emphasized that the decision involved various departments within the company, including business, compliance, and others.
This move comes amidst ongoing scrutiny of stablecoins, with US Treasury Secretary Yellen recently calling for federal regulation. While USDC is the second-largest stablecoin with a market cap of nearly $28 billion, the Tron integration has faced criticism. In November, Circle denied claims of providing services to Tron founder Justin Sun.
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