Circle Ends Support for USDC on Tron Network
On Wednesday, the second largest stablecoin issuer by daily trading volume, Circle, revealed plans to stop supporting USDC on the Tron network. The Circle team stated that the decision to cease supporting USDC on the Tron blockchain aligned with the company risk management initiative.
Immediately after the announcement, the Circle team updated the community that it would no longer facilitate the minting of USDC on Tron. The stablecoin issuer advised the customers to transfer the USDC on the Tron network to other blockchains supported by Circle.
Circle Cease USDC Minting on Tron
In the report, the Circle team confirmed that the customers will have until February 2025 to transfer their USDC from Tron to other networks. Consecutively, the Circle team urged the retail customers to transfer their USDC on Tron to their preferred exchanges, where further conversion to another blockchain will occur.
Before then, the Circle team thoroughly examined the suitability of other blockchains supported by USDC. The proposed assessment of USDC-supported blockchain aims to improve the compliance level of the stablecoin issuers.
In the report, the Circle team clarified that the decision to end support for USDC on Tron was based on the enterprise-wide assessment findings that examined the business organization, compliance, and other functions.
According to Circle, the company seeks to profile the USDC as a trusted, transparent, and safe stablecoin that outdo its competitor, Tether. In an exclusive interview with the founder of Tron network, Justin Sun described Circle’s decision to end supporting USDC on the network as “unilateral commercial.”
He explained that the Circle move was unexpected, and the Tron community was still trying to understand the situation. Responding to the X community, Sun argued that Tron would respect and support the Circle decision and encouraged other developers to continue building on the network.
Some X users expressed concern about the Circle move to end supporting USDC on the Tron network. Arguably, Tron has been considered among the networks with low fee charges and fast settlement capabilities, attracting large numbers of active users to the stablecoin industry.
Circle Discontinue to Support Tron
The report indicates that since 2021, the Tron network has been supporting Circle rivals, including Tether. Based on the distinguished features of Tron, consumers have demonstrated a growing interest in this network to execute business in developing markets.
Despite Tron’s impressive growth, the co-founder has been battling a slew of legal charges in the US. In March last year, Sun was accused of violating the securities law in the US.
A review of the court report demonstrated that the US Securities and Exchange Commission (SEC) alleged that Tron’s boss defrauded the customers. Also the SEC claimed that Sun inflated Tron (TRX) trading volume to entice customers in investing these products.
Factors Contributing to Growth of the Stablecoin Industry
Also, the market regulators alleged that Sun engaged several public figures to promote Tron and BitTorrent (BTT). The celebrity endorsement raised eyebrows among the US regulators, who claimed it was unlawful to compensate the leading lights without the appropriate disclosure.
The court report indicated that the Tron team engaged Lindsay Lohan, Akon, Lil Yachty, and Soulja Boy in promoting the Sun projects. In response to the SEC claim, the Sun argued that the allegations were baseless and lacked substantial evidence. He described the SEC allegations as swirling rumors.
Apart from this, the Circle divorcing Tron created mixed feelings among the crypto community. A review of the Circle website demonstrated that USDC attained the desired level of growth to nearly outpace its rival, Tether.
Last year, the price movement of USDC and USDT was greatly affected by the surge in interest rates, leading to the de-pegging of the stablecoin. Irrespective of this, USDC has maintained a high-value compliance and transparent stablecoin compared to other competitors.
In the meantime, the Circle team has been seeking to expand its product offering. Report indicates that the Circle team has been engaging in intense discussions with the SEC to offer its initial public offering (IPO).
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