Effective Phase-Out
Stablecoin issuer Circle is discontinuing support for its US dollar-pegged digital coin (USDC) on the Tron (TRX) blockchain with immediate effect. Circle has stated that USDC minting on the Tron network will cease, although transfers and redemptions will continue to be supported until February 2025.
Transition Measures
- Circle Mint customers can transfer USDC on Tron to other supported blockchains or redeem it for fiat currency directly with Circle.
- Retail holders and non-Circle customers can utilize various global services, such as retail exchanges, brokerages, and on/off-ramp providers, to transfer USDC to other supported blockchains or redeem it for fiat currency.
Reasoning Behind the Decision
Circle’s decision to end support for USDC on Tron is part of a phased transition aimed at maintaining the stablecoin’s reputation for security, transparency, and reliability. Circle continually evaluates the suitability of blockchains where USDC is supported as part of its risk management strategy. The company’s decision to discontinue support for USDC on Tron is the culmination of a comprehensive review involving various departments across the organization, including business management, compliance, and others.
Alleged Criminal Activity
In January, the United Nations Office on Drugs and Crime (UNODC) asserted that criminals in East and Southeast Asia favored using Tether (USDT) on the Tron blockchain due to its perceived stability, ease of use, anonymity, and low transaction fees. Tron disputed the agency’s claims.
Tron’s Response
Tron fully supports the UN’s efforts to combat illicit activities in the blockchain space. However, it is inaccurate to suggest that Tron, Ethereum, or similar decentralized protocols can directly control those who use their open-source technology for nefarious purposes.