U.S. cryptocurrency company Circle recently stated to stop supporting its USDC stablecoin on the Tron blockchain network. The Boston-based company said the move aligns with its efforts to keep USDC transparent, trusted, and safe.
Circle did not provide a reason for ending USDC support on Tron. However, the company said its risk management framework continually assesses the suitability of blockchains that host USDC. The second-largest stablecoin after Tether, USDC has $28 billion in circulation and over $335 million hosted on Tron.
Institutions can transfer or redeem USDC on Tron until February 2025. Retail investors can move their tokens to other blockchains. Last year, Circle closed the accounts of Tron founder Justin Sun over regulatory issues. The SEC sued Sun in 2020 over allegedly illegal Tron token sales.
Circle said the Tron decision affects the blockchain itself, not individual users. In November, reports claimed Tron facilitated crypto transfers by designated terror groups, which Tron denied. Ending Tron support lets Circle keep USDC in line with its transparency and trust standards amid Sun’s regulatory troubles.
Also Read: TRON Plans to Bridge $55 Billion Ecosystem to Bitcoin Layer 2
