Circle, the issuer of the USD Coin (USDC) stablecoin, has announced the cessation of its support for USDC on the Tron blockchain.
“Circle is discontinuing support for USDC on the Tron blockchain in a phased transition. Effective immediately we will no longer mint USDC on Tron,” it said.
Customers’ transfers of USDC to other blockchains will be supported through February 2025, while retail users and other non-Circle customers can move their USDC on Tron using exchanges.
Circle cited its risk management framework as part of the decision. “This action aligns with our efforts to ensure that USDC remains trusted, transparent and safe – characteristics that make it the leading regulated digital dollar on the internet,” it stated.
Stablecoins are typically pegged 1-1 to fiat currencies and backed by reserves of cash and bonds. They make up about $140 billion of the $2.1 trillion digital-asset market, according to data from CoinGecko. The blockchain-based tokens facilitate crypto trading and lending, and some commentators argue they may have a wider use in payments.
The market value of stablecoins on the Tron network stands at $51.5 billion, almost all of it accounted for by USDT or Tether, the largest stablecoin in crypto, according to data from DefiLlama. USDC, also known as USD Coin, comprises $314 million of the figure.
The repercussions of Circle’s move are likely to reverberate across the Tron ecosystem, as USDC’s withdrawal may impact liquidity and trading activity on the Tron blockchain. Tron, founded by Justin Sun, has positioned itself as a scalable platform for decentralized applications (dApps) and digital asset issuance, but concerns over security and regulatory compliance could hinder its broader adoption.
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