Key Takeaways:
- Circle ceases $313 million USDC support on Tron amidst compliance drive.
- Circle accuses Tron blockchain of involvement in illicit financial activities.
Circle, a leading financial technology firm, has recently announced its decision to discontinue support for the USD Coin (USDC) on the Tron blockchain.
This move comes as part of Circle’s commitment to maintaining USDC as a trusted, transparent, and safe currency in the market. In a blog post, Circle highlighted that the decision to halt USDC support on Tron is effective immediately.
The firm explained that this decision is in line with its ongoing efforts to uphold the integrity and safety of USDC, one of the leading stablecoins in the market.
Circle emphasised that the move aligns with its risk management framework, which involves assessing the suitability of all blockchains where USDC is supported.
While the decision may impact investors using USDC on the Tron blockchain, Circle assured that customers’ transfers of USDC to other blockchains will be supported through February 2025.
Additionally, retail users and other non-Circle customers can still move their USDC on Tron using exchanges.This decision by Circle to pull Tron support for USDC follows an “enterprise-wide approach” involving various functions across the company, including the business organization and compliance teams.
Circle aims to ensure that USDC remains trusted, transparent, and safe for all users.
It’s worth noting that Circle had previously refuted claims of providing services to Tron founder Justin Sun, stating that it hadn’t done so since February 2023.
This came after an ethics group raised concerns about the firm’s integration with the Tron network.
In response to Circle’s decision, Justin Sun expressed respect for every developer’s choices and emphasized Tron’s decentralized structure, akin to Bitcoin and Ethereum.
He stated that Tron’s vision is to become the largest and most prosperous decentralized financial protocol globally, encouraging developers to continue building on the Tron network.
Overall, Circle’s decision to halt USDC support on the Tron blockchain reflects its commitment to maintaining the integrity and safety of the stablecoin. Investors using USDC on Tron should consider alternative options for their transactions, while Circle continues to assess and manage risks associated with supporting USDC on various blockchains.
