Written by Tom Wilson
LONDON (Reuters) – Leading U.S. cryptocurrency company Circle plans to end support for the USDC token on the Tron blockchain network, with the company saying on Wednesday that the decision “ensures the authenticity, transparency and security of USDC.” This is consistent with our efforts to achieve this goal.”
Boston-based Circle announced on its blog that effective immediately, it will stop minting USDC tokens on Tron, a fast-growing platform widely used for stablecoin transfers. Its founders are facing regulatory issues in the US.
Stablecoins are digital tokens designed to maintain a constant value and are backed by traditional currencies.
Circle did not provide a reason for the decision, but said it was “continually evaluating the suitability” of the blockchain to support USDC, the second-largest stablecoin after Tether, under its risk management framework. He said there was.
It said that until February 2025, institutional customers will be able to transfer USDC held on Tron to other blockchains or redeem the tokens for traditional currencies. It added that retail customers can transfer USDC to other blockchains and redeem USDC at crypto exchanges and brokerages.
Circle announced in January that it had filed for an initial public offering (IPO) in the United States, but last year it suspended accounts held by Tron founder Justin Sun and his affiliates.
Sun, a prominent cryptocurrency entrepreneur, was sued by the Securities and Exchange Commission last year for allegedly artificially inflating trading volumes and selling Tron tokens as unregistered securities. Sun said the SEC's charges “lack merit.”
Circle's latest announcement affects USDC on the Tron blockchain “and not individual users or affiliated entities,” a spokesperson said.
With approximately $28 billion in circulation, USDC is the eighth largest crypto token, according to data firm CoinGecko. According to his website on Circle, $335 million worth of his USDC is hosted on Tron.
In November, Reuters reported, citing interviews with financial crimes experts and blockchain investigative experts, that Tron is a platform for cryptocurrency transfers linked to groups designated as terrorist organizations by Israel, the United States and other countries. reported that it has overtaken Bitcoin.
In response to this article, a Tron spokesperson said that Tron cannot control the people who use its technology and is not affiliated with any groups identified by Israel.
(Reporting by Tom Wilson in London; Editing by Tommy Reggioli-Wilkes and Emelia Sithole-Matarise)
