Updated February 21st, 2024 at 15:11 IST

Circle ends support for USDC on Tron Network, citing safety concerns

USDC, with approximately $28 billion in circulation, is the eighth-largest cryptocurrency token.

Reported by: Business Desk
Circle ends support for USDC on Tron Network, citing safety concerns | Image:Unsplash
Advertisement

Cricle ends USDC support: Major US cryptocurrency firm Circle announced on Wednesday that it would cease supporting its USDC token on the Tron blockchain network. The decision, according to Circle, is part of its efforts to ensure that USDC remains trusted, transparent, and safe.

Effective immediately, the company will no longer mint USDC tokens on Tron, a platform known for its use in transferring stablecoins. The company did not provide a specific reason for the decision but stated that it continually assesses the suitability of blockchains supporting USDC.

Advertisement

Tokens to be transferred 

Institutional clients holding the tokens on Tron can transfer them to other blockchains or redeem them for traditional currency until February 2025. Retail customers can also transfer tokens to other blockchains or redeem them at crypto exchanges and brokerages.

Advertisement

Tron's objective is to become the world's largest decentralised financial protocol, according to a Tron spokesperson, who added that the project is moving forward.

Circle's decision comes after it terminated accounts held by Tron founder Justin Sun and his affiliated companies last year. Sun is currently facing legal challenges, including a lawsuit from the Securities and Exchange Commission for allegedly inflating trading volumes and selling Tron tokens as an unregistered security.

Advertisement

USDC, with approximately $28 billion in circulation, is the eighth-largest cryptocurrency token. Approximately $335 million worth is hosted on Tron, according to Circle's website.

In November, reports surfaced that Tron had surpassed Bitcoin in facilitating crypto transfers associated with groups designated as terror organizations. Tron has stated that it does not have control over the use of its technology and is not linked to the groups identified.

Advertisement

(with Reuters inputs)

Advertisement

Published February 21st, 2024 at 15:11 IST