Crypto company Circle will no longer support the USDC stablecoin on the Tron network

Leading American cryptocurrency startup Circle said on Wednesday that it would no longer support its USDC token on the Tron blockchain network. The move is “aligned with its efforts to ensure that USDC remained trusted, transparent, and safe.” In a blog post, Boston-based Circle said that it will stop minting USDC tokens on Tron, a rapidly expanding stablecoin transfer network whose creator is dealing with legal issues in the US. The decision took effect immediately.

Stablecoins are digital tokens backed by fiat money that are intended to maintain a steady value. The second-largest stablecoin after Tether, USDC, is supported by blockchains that Circle “continually assesses the suitability” of, according to its risk management framework. Circle did not provide a justification for its decision. According to the statement, institutional customers have until February 2025 to convert USDC stored on Tron to other blockchains or exchange the tokens for fiat money. It further said that retail users may redeem their USDC at cryptocurrency exchanges and brokerages and move it to other blockchains.

Tron creator Justin Sun and his related firms had their accounts deleted by Circle last year. In January, Circle announced that company had filed for a U.S. initial public offering. The Securities and Exchange Commission filed a lawsuit against well-known cryptocurrency pioneer Sun last year for allegedly selling Tron tokens as unregistered securities and increasing trade volumes fraudulently. The SEC accusations “lack merit,” according to Sun. According to a spokeswoman, Circle’s most recent statement impacts USDC on the Tron blockchain “as opposed to an individual user or related business entities.” USDC is the eighth-largest cryptocurrency token in circulation, with around $28 billion in circulation, according to statistics company CoinGecko. According to Circle’s website, USDC worth $335 million are housed on Tron.

According to conversations with blockchain investigators and experts in financial crime, Reuters revealed in November that Tron has surpassed Bitcoin as the most popular cryptocurrency for transfers of cryptocurrency linked to groups that have been labeled as terrorist organizations by the US, Israel, and other nations. A spokesman for Tron responded to that piece by stating that the company had no control over anyone using its technology and had no connection to the organizations that Israel had named.