Circle to end support for $313 million USDC on Tron amid compliance push News ▸ TRON ▸ Stablecoins
Circle to end support for $313 million USDC on Tron amid compliance push
The Tron blockchain has faced allegations of alleged involvement in illicit financial activities by Circle.
2 min read
Updated: Feb. 21, 2024 at 1:59 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Centralized stablecoin issuer Circle is discontinuing support for USD Coin (USDC) on the Tron blockchain, citing concerns within its risk management framework.
According to a Feb. 21 statement, this decision is rooted in the firm’s commitment to ensuring USDC remains “trusted, transparent and safe” for its user base. The company added that this move was part of “an enterprise-wide approach” involving various departments, including business organization and compliance. However, specifics of the departments or rationale was not disclosed.
Therefore, Circle would, effective immediately, no longer mint USDC tokens on the Tron blockchain.
“Circle is discontinuing support for USDC on the TRON blockchain in a phased transition. Effective immediately we will no longer mint USDC on TRON,” it added.
While Circle will assist its Circle Mint users in transferring their USDC to alternative blockchain networks until February 2025, clients can redeem their USDC holdings for fiat directly with the issuer.
For retail USDC holders and non-Circle customers, numerous global services, such as retail exchanges and brokerages, can transfer USDC between blockchains or convert USDC to fiat currency.
Meanwhile, this move followed Circle’s previous disassociation with allegations linking it to terror financing and Justin Sun, the Tron blockchain founder. Circle said it terminated all accounts associated with Sun in February 2023.
USDC is the second-largest stablecoin by market capitalization. Circle recently disclosed plans for a public offering through a filing submitted to the Securities and Exchange Commission.
Tron’s response
On Feb. 21, Sun said that he respects every developer’s choices, pointing out that his blockchain network shares a decentralized structure akin to Bitcoin and Ethereum.
He added:
“We respect and support each developer’s development decisions and hope to encourage them to develop on TRON. Ultimately, TRON’s vision is to become the largest and most prosperous decentralized financial protocol in the world.”
Tron has emerged as one of the fastest-growing networks for stablecoins transactions. According to DeFillama data, it ranks as the second-largest network for stablecoins, accommodating approximately $52 billion worth of these assets. Circle’s USDC currently lies in fourth place behind USDT, TUSD, and USDD on Tron with $313 million in assets compared to $49 billion USDT.
However, recent reports from prominent international bodies like the United Nations have raised concerns about the blockchain’s alleged involvement in illicit financial activities—an accusation Sun vehemently refutes.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Bitcoin
$97,895.61
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,142.38
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.