The USDC stablecoin will no longer be supported on the Tron blockchain, according to a recent announcement from US cryptocurrencycurrency startup Circle. The decision, according to the Boston-based corporation, is in line with its goals to keep USDC safe, transparent, and trustworthy.
Circle did not give a justification for discontinuing USDC support on Tron. But according to the corporation, the viability of blockchains hosting USDC is continuously evaluated by its risk management framework. With $28 billion in circulation and approximately $335 million hosted on Tron, USDC is the second-largest stablecoin after Tether.
Institutions have until February 2025 to transfer or redeem USDC on Tron. Tokens held by individual investors can be transferred to different blockchains. Justin Sun, the founder of Tron, had his accounts canceled by Circle last year due to regulatory concerns. 2020 saw Sun sued by the SEC for allegedly engaging in illicit Tron token sales.
According to Circle, the blockchain is impacted by the Tron decision rather than specific users. Tron refuted accusations that surfaced in November, claiming it assisted designated terror groups with cryptocurrencycurrency transfers. By discontinuing Tron support, Circle is able to maintain USDC’s compliance with its transparency and trust requirements, notwithstanding Sun’s regulatory issues.
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