USDC stablecoin issuer Circle ends support on TRON due to compliance, risk management issues

Share:

Circle, issuer of one of the largest stablecoins in the ecosystem, USD Coin (USDC), announced plans to discontinue the asset on the TRON blockchain. The move comes after TRON founder Justin Sun’s recent post about the future of TRON and plans to integrate its ecosystem assets with the Bitcoin blockchain. 

Also read: Uniswap launches v2 on Arbitrum, Polygon, Optimism, Base, Binance Smart Chain and Avalanche

Circle ended its USDC mint on TRON, effective February 21, according to its official announcement. Circle’s plan is to discontinue support in a phased manner, while minting activities are ceased immediately, the USDC issuer will support customers’ transfer of the stablecoin to other blockchains until February 2025. 

Retail users of USDC on TRON can move their assets to an exchange, since Circle extends support only to institutional investors. Circle’s customers can exchange their USDC for fiat directly with the firm. Circle will redeem 1 USD Coin for 1 USD. 

In its announcement, the firm explains that the decision was a part of their risk management framework that assesses the suitability of blockchains that support USDC. Pulling support for TRON aligns with Circle’s effort to maintain the transparency and safety of its stablecoin and its users. 

Interestingly, the move comes soon after TRON’s plan to integrate ecosystem assets with the Bitcoin blockchain. Find out more about it here.