Circle cites compliance as it discontinues USDC on Tron

Customers will have the option to transfer USDC from Tron to other networks or redeem their stablecoins for fiat currency

article-image

Circle and Adobe Stock modified by Blockworks

share

Peer-to-peer payments company Circle will discontinue its support for stablecoin USDC on Justin Sun’s Tron network.

USDC is the second-largest stablecoin by market capitalization, with a total circulating amount of a little under $26.9 billion, according to information available on DeFiLlama.

Circle’s decision to discontinue USDC on the TRON network was the result of an enterprise-wide approach that involved its business organization, compliance and other functions at the company, a Circle spokesperson told Blockworks. 

“This action aligns with our efforts to ensure that USDC remains trusted, transparent and safe — characteristics that make it the leading regulated digital dollar on the internet,” the Circle spokesperson said.

Read more: Circle moves native USDC offering to Cosmos mainnet

Customers of Circle Mint will have the option to transfer their USDC tokens from TRON to other networks or directly redeem USDC on TRON for fiat currency. Other retail users who hold USDC can transfer their tokens through exchanges or on/off-ramp services. 

When reached for comment, a Tron spokesperson did not directly address Circle’s discontinuation of support. 

“We respect the decision of the countless developers who chose TRON to create world-class products and services,” the spokesperson said. 

USDT remains the most dominant stablecoin on the TRON network today, making up over 96% of the network’s total stablecoin market cap. The price of the network’s native toke, TRX, has remained relatively stable following the news, currently trading at $0.139, according to CoinGecko.

TRON’s founder, Justin Sun, has previously been charged by the US Securities and Exchange Commission for the unregistered offer and sale of crypto securities Tronix (TRX) and BitTorrent (BTT). Additional charges were also handed to the founder for market manipulation through wash-trading.

Circle, in November, strongly refuted allegations of banking Justin Sun or financing Hamas, as outlined in a letter to US Senators Elizabeth Warren, D-Mass., and Sherrod Brown, D-OH. The company clarified it had severed all ties with Sun and his entities by February 2023 and challenged claims of the company’s involvement in illicit financial activities, emphasizing its commitment to legal compliance and transparency.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

ao cover.jpg

Research

Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.

article-image

Crypto markets were largely the only ones open over a tense weekend, and they took a beating for it

article-image

Though some expect most public miners to survive the halving, the segment’s most vulnerable could fall victim to consolidations and defaults

article-image

The US spot bitcoin fund category has notched negative net flows over the course of a week just three times since coming to market in January

article-image

Elsewhere, rank-and-file employees move around and Binance’s head of legal in Europe departs

article-image

Plus, a Dragonfly partner shares his view on the crypto VC market, and a mining hardware firm raises $80 million

article-image

Plus, a Bored Ape burger restaurant closes, and Crypto: The Game presses on