USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues
- Circle announced plans to discontinue USDC on the TRON blockchain in a phased manner.
- USDC issuer will no longer mint the stablecoin on TRON, effective Wednesday.
- Circle stated that its decision is a part of risk management and USDC will remain safe with the change.
Circle, issuer of one of the largest stablecoins in the ecosystem, USD Coin (USDC), announced plans to discontinue the asset on the TRON blockchain. The move comes after TRON founder Justin Sun’s recent post about the future of TRON and plans to integrate its ecosystem assets with the Bitcoin blockchain.
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USDC issuer discontinues the stablecoin on TRON
Circle ended its USDC mint on TRON, effective February 21, according to its official announcement. Circle’s plan is to discontinue support in a phased manner, while minting activities are ceased immediately, the USDC issuer will support customers’ transfer of the stablecoin to other blockchains until February 2025.
Retail users of USDC on TRON can move their assets to an exchange, since Circle extends support only to institutional investors. Circle’s customers can exchange their USDC for fiat directly with the firm. Circle will redeem 1 USD Coin for 1 USD.
In its announcement, the firm explains that the decision was a part of their risk management framework that assesses the suitability of blockchains that support USDC. Pulling support for TRON aligns with Circle’s effort to maintain the transparency and safety of its stablecoin and its users.
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
Interestingly, the move comes soon after TRON’s plan to integrate ecosystem assets with the Bitcoin blockchain. Find out more about it here.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
