Circle, a large US cryptocurrency firm, will suspend support for its USDC token on the Tron blockchain network.
Circle, a major US cryptocurrency corporation, will discontinue support for its USDC token on the Tron blockchain network, a decision the company stated on Wednesday was “in line with its efforts to ensure that USDC remained trusted, transparent, and safe.”
Circle, based in Boston, announced in a blog post that it will no longer create USDC tokens on Tron, a rapidly developing network commonly used for transferring stablecoins, whose founder is experiencing regulatory issues in the United States.
Stablecoins are digital tokens that have a fixed value and are backed by traditional currencies.
Circle did not provide an explanation for its decision but stated that, as part of its risk management strategy, it “continually assesses the suitability” of blockchains that support USDC, the second-largest stablecoin after Tether.
It stated that institutional clients can move USDC stored on Tron to other blockchains or redeem their tokens for traditional cash until February 2025. Retail users can move USDC to other blockchains and redeem it via cryptocurrency exchanges and brokerages, the company said.
Tron’s objective is to be the world’s “largest and most prosperous decentralized financial protocol,” according to a source who adds, “We continue to move forward.”
Circle, which announced in January that it was filing for a U.S. IPO, deleted accounts held by Tron founder Justin Sun and his connected firms last year.
The Securities and Exchange Commission sued Sun, a renowned cryptocurrency inventor, last year for allegedly fraudulently boosting trade volumes and marketing Tron tokens as an unregistered security. Sun said the SEC charges “lack merit.”
According to a source, Circle’s latest declaration affects USDC on the Tron blockchain “as opposed to an individual user or related business entities.”.
According to analytics firm CoinGecko, USDC is the eighth-largest cryptocurrency token in circulation, with around $28 billion in circulation. USDC worth $335 million is hosted on Tron, according to Circle’s website, which opens in a new tab.
Tron has surpassed Bitcoin as a medium for crypto transactions affiliated with entities labeled as terrorist organizations by Israel, the US, and other countries.
In reaction to the publication, a Tron spokeswoman stated that the company has no control over those who use its technology and is not affiliated with the groups listed by Israel.
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