Circle, a major issuer of stablecoins, has announced its decision to halt the minting of USD Coin (USDC) on the Tron blockchain effective immediately. This move, according to Circle, is part of its commitment to maintaining the trust, transparency, and safety of USDC.
Transition Plan for USDC Holders on Tron
Effective immediately, Circle will no longer mint USDC on the Tron network and will gradually phase out support for the blockchain. However, the company assures continued support for its Circle Mint business customers’ USDC transfers 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/ 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
Assessment of Blockchain Suitability
While Circle did not specify the exact reasons for discontinuing support for Tron, it emphasized that the decision was part of its ongoing risk management process, where the suitability of all blockchains is continually assessed. The move to pull Tron support was the result of an enterprise-wide evaluation involving various organizational functions within Circle.
Last month, Circle filed for an initial public offering (IPO) in the United States. The USDC stablecoin, with a market capitalization nearing $28 billion, is the second-largest stablecoin after Tether (USDT), which holds a valuation of $97.5 billion, according to CoinGecko data.
In November, Circle refuted claims of providing services to Tron founder Justin Sun since February 2023, following allegations from an ethics group suggesting its integration with the Tron network compromised its integrity. The Campaign for Accountability cited Tron’s association with international law enforcement actions involving significant transactions by alleged organized crime groups and sanctioned entities.
The 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 allegations.
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