USDC stablecoin: Circle abandons Tron blockchain as part of its risk management strategy and considers a proprietary network
Circle, a well-known issuer of cryptographic stablecoins, announced this morning that it will immediately stop supporting its USDC coin within the Tron blockchain, citing a group adjustment as part of its risk strategy.
Users holding USDC on the Tron network can perform the official redeem until February 2025 to redeem fiat currency, or use a variety of intermediary services available on CEX or in DeFi.
The choice of the issuer suggests a likely expansion of the company in the field, which could be inclined to launch its own native network in the future.
In the coming months, Circle could also abandon other blockchains if it deems it appropriate.
Analysis of the circulating supply of USDC: Tron becomes increasingly central for USDT
Beyond the strategic reasons in terms of corporate risk management, Circleโs decision to abandon support for USDC on Tron comes after a decidedly dark year in terms of stablecoin growth on the mentioned blockchain.
At the time of writing on Tron, there are approximately 313.5 million USDC, which is just over 1% of the circulating supply of the currency.
Exactly one year ago, in February 2023, on Justin Sunโs network we could count a total of 1.4 billion of the same stablecoin. In total, approximately 1.086 billion dollars were lost along the way, resulting in an overall decrease of 77%
Circleโs decision and implications for stablecoin holders and crypto enthusiasts ๐ง
The stablecoin issuer Circle has decided to remove support for USDC on the Tron blockchain as part of its risk exposure strategy adjustment. This decision has significant implications for both stablecoin holders and crypto enthusiasts alike.
Circleโs move highlights potential expansion and innovation ๐
This move by Circle may indicate an expansion into new markets or even suggest that they are considering launching their own proprietary network in the future. Furthermore, it indicates that Circle is committed to ensuring investors have access to a reliable and secure environment for transacting with USDC.
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