Circle Drops TRON Support for USDC, Citing Risk Management
Stablecoin issuer Circle will stop supporting USDC on the TRON blockchain, as part of concerns under its risk management framework.
In a statement on Wednesday, the company outlined a phased discontinuation of USDC support on TRON. This transition will occur over a period extending to Feb. 2025, with continued normalcy for USDC transfer and redemption activities on TRON.
“Our decision to discontinue support for USDC on TRON is the result of an enterprise-wide approach that involved the business organization, compliance and other functions across our company,” Circle said on X.
Circle didn’t return Cryptonews’ request for comment by press time.
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
Further, Circle said it will enable Circle Mint customers to transfer USDC to alternative blockchains until Feb. 2025. They will have the option to transfer their USDC from TRON to other compatible blockchains, or redeem them directly for fiat currency through Circle.
Circle Mint is a feature allowing businesses and large-scale users to mint and redeem Circle’s stablecoins, USDC and EURC.
“As always, USDC remains redeemable 1:1 for US dollars,” the company added.
Circle’s move comes as troubled blockchain TRON has faced allegations of involvement in money laundering. This has raised concerns about potential illicit activity within its ecosystem.
Relatedly, non-profit ethics organization Campaign for Accountability in November wrote a letter to US Senators Elizabeth Warren and
Read more on cryptonews.com
