Coin minting for the Tron network will end “to guarantee that USDC stays trustworthy,” according to the stablecoin issuer located in the United States.
U.S. dollar-pegged stablecoin USD Coin’s issuer, Circle, has announced that it will end support for the token on the Tron blockchain. The company has said that this move is in line with “efforts to guarantee that USDC stays trustworthy, transparent, and secure.”
Circle said in a blog post on February 20 that it will be ceasing minting USDC on TRON “effectively immediately” and would progressively remove support for the blockchain network.
It was said that until February 2025, Circle would continue to assist its “Circle Mint” commercial clients with USDC transfers to other blockchains.
In order to transfer their USDC from TRON to a blockchain network that still accepted USDC, the business recommended retail consumers and non-Circle clients do so via an exchange.
While stating that it “continuously reviews the appropriateness of all blockchains” as part of its risk management approach, Circle did not provide an explanation for why it is ceasing support for Tron.
It was the “product of an enterprise-wide strategy that encompassed the business organization, compliance, and other areas throughout our company,” the corporation said, further explaining why they were pulling Tron support.
Circle sought to become a public company in the US last month. The market value of its USDC stablecoin is about $28 billion, putting it in second place among its competing stablecoins, according to CoinGecko statistics. Tether’s worth stands at $97.5 billion.
Circle denied in November that it had ever provided any services to Justin Sun, creator of Tron, stating that this had ended in February 2023, when an ethics organization had sent a letter to Congress accusing the company of being “compromised by its integration” with the Tron network.
A campaign alleges that “sanctioned entities and alleged organized criminal organizations” transacted billions of dollars via Tron, according to the Campaign for Accountability.
Sun strongly rejects the allegations made by the Securities and Exchange Commission, which sued him and the Tron Foundation in March 2023, claiming that they engaged in manipulative trading and marketed unregistered securities.
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