Circle Ends Support for USDC on Tron Blockchain
Stablecoin issuer Circle has announced that it will no longer support its US dollar-pegged digital coin on the Tron (TRX) blockchain. The company will stop minting USDC on the Tron network immediately, but transfers and redemptions will still be supported until February 2025. Circle customers can transfer USDC to other supported blockchains or redeem it for fiat currency directly with Circle. Non-Circle customers can use various global services to transfer USDC to other supported blockchains or redeem it for fiat currency.
Phased Transition to Ensure Trust and Transparency
Circle states that discontinuing support for USDC on Tron is part of a phased transition aimed at ensuring the stability, transparency, and safety of the stablecoin. The decision was made after a comprehensive assessment by Circle’s business organization, compliance, and other functions across the company.
Tron Challenges UNODC’s Assessment
In January, the United Nations Office on Drugs and Crime (UNODC) claimed that criminals in East and Southeast Asia prefer using Tether (USDT) on the Tron blockchain due to stability, ease, anonymity, and low transaction fees. Tron challenged this assessment, stating that decentralized protocols like Tron and Ethereum cannot exercise direct control over those who utilize their open-source technology.
- Circle is ending support for USDC on the Tron blockchain.
- Minting of USDC on Tron will cease immediately, but transfers and redemptions will continue until February 2025.
- Customers can transfer USDC to other supported blockchains or redeem it for fiat currency directly with Circle.
- Discontinuing support for USDC on Tron is part of a phased transition to ensure trust, transparency, and safety of the stablecoin.
- Tron challenges the UNODC’s assessment that criminals prefer to use Tether on the Tron blockchain.
Hot Take: Circle Ends Support for USDC on Tron Blockchain
Circle’s decision to discontinue support for USDC on the Tron blockchain reflects its commitment to maintaining a trusted and transparent stablecoin. By ceasing minting activities on Tron, Circle aims to ensure the stability and safety of USDC. This move also highlights the ongoing debate surrounding the use of blockchain technology by malicious actors. While the UNODC claims criminals prefer Tether on Tron, Tron argues that decentralized protocols cannot control how their technology is utilized. As the crypto industry evolves, it is crucial for issuers like Circle to prioritize risk management and make informed decisions regarding blockchain support.
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