Circle, the US cryptocurrency firm, announced its decision to terminate support for its USDC token on the Tron blockchain network. The decision has been revealed today (Wednesday).
Circle Halts USDC Minting on Tron
Stablecoins like USDC are digital assets designed to maintain a stable value, typically backed by traditional currencies. Effective immediately, Circle will cease the minting of USDC tokens on Tron, a rapidly growing blockchain platform widely used for stablecoin transfers. The company did not provide specific reasons for its decision.
While institutional clients have until February 2025 to transfer USDC held on Tron to other blockchains or redeem tokens for traditional currency, retail customers can transfer USDC to alternative blockchains or redeem them at crypto exchanges and brokerages.
Tron, which aims to establish itself as the world's leading decentralized financial protocol, expressed its commitment to advancing despite Circle's decision. A spokesperson of Tron reiterated platform's vision for the future.
Circle's decision to sever ties with Tron has followed its termination of accounts associated with Tron's Founder, Justin Sun, and his affiliated companies last year. Sun faced legal action from the Securities and Exchange Commission (SEC) in 2023 for allegedly inflating trading volumes and selling Tron tokens as unregistered securities. Sun has denied the SEC charges, stating they lack merit.
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
USDC's Global Circulation: Insights into its Market Presence
The termination of USDC support on Tron primarily impacts the Tron blockchain network itself rather than individual users or related businesses, according to a Circlespokesperson. Currently, USDC boasts a circulation of approximately $28 billion, making it the eighth-largest cryptocurrency token globally. Notably,USDC worth $335 million are hosted on the Tron network, as reported on Circle's website.
In November last year, Reuters reported that Tron had surpassed Bitcoin as a preferred platform for crypto transfers linked to groups designated as terror organizations by various countries, including the United States and Israel, citing insights from financial crime experts and blockchain investigation specialists.
This article was written by Tareq Sikder at www.financemagnates.com.
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