Circle, the issuer of the USD Coin (USDC) stablecoin, has terminated support for USDC tokens on the Tron blockchain (TRX).
Circle announced this move in a blog post earlier today, noting it aligns with its commitment to maintaining transparency and safety for USDC.
Per the report, Circle will stop minting USDC on Tron immediately, but will gradually phase out support for already-minted USDC on the blockchain.
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
Choices Tron USDC Users
Notably, Circle stated it will continue facilitating USDC transactions for its Circle Mint business partners to other blockchains until the end of February 2025.
During this period, Circle Mint clients can redeem USDC on Tron directly for fiat currency through Circle’s platform. Meanwhile, the firm provided a different option for retail USDC users and non-Circle partners.
Specifically, the report highlighted that retail users have the flexibility to transfer their USDC on Tron to exchanges, distributors, or on/off-ramp providers.
From these platforms, they can transfer their USDC to blockchains where the token is actively supported.
Why Circle is Cutting Off Tron
Significantly, Circle provided generic rather than specific reasons for discontinuing support for the Tron blockchain.
The company emphasized that this decision aligns with its continuous risk management efforts, which involve assessing the suitability of all blockchains supporting USDC.
“This action aligns with our efforts to ensure that USDC remains trusted, transparent, and safe,” the statement read.
Nonetheless, this development comes amid Circle’s move to go public in the United States.
Last November, Circle refuted claims of providing services to Tron founder Justin Sun, stating that it had ceased such activities since February 2023.
The clarification came in response to allegations made by an accountability group. The allegation linked Tron to international enforcement actions involving significant trades by sanctioned entities and alleged organized crime groups.
Notably, the U.S. SEC previously sued Justin Sun and the Tron Foundation, alleging the offering of unlicensed securities and manipulative trading, claims which Sun has denied.
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