Circle ended its support for USDC stablecoin

A Tron spokesperson emphasized the platform's lack of control over users

Circle, a prominent U.S.-based cryptocurrency firm, has announced its decision to discontinue support for the USDC token on the Tron blockchain network. The company stated that this move is in line with its commitment to ensuring the trust, transparency, and safety of USDC. Effective immediately, Circle will cease minting USDC tokens on Tron, citing its risk management framework as the basis for continually assessing blockchain suitability for USDC support. Institutional clients holding USDC on Tron have until February 2025 to transfer or redeem their tokens, while retail customers can do so through crypto exchanges and brokerages. Notably, Circle terminated accounts held by Tron founder Justin Sun and his affiliated companies last year.

Sun faced legal action from the Securities and Exchange Commission (SEC) for alleged securities violations, which he disputed. The decision impacts USDC on the Tron blockchain specifically, with Circle clarifying that it does not target individual users or related entities. USDC, with a circulation of approximately $28 billion, ranks as the eighth-largest cryptocurrency token. Tron hosts USDC worth $335 million, according to Circle's data. In November, Reuters reported Tron's emergence as a platform for crypto transfers associated with groups designated as terror organizations by certain countries. In response, a Tron spokesperson emphasized the platform's lack of control over users and disassociation from the identified groups.