Circle Announces Immediate Suspension of USDC Issuance on Tron
Circle has announced the discontinuation of its USDC stablecoin support on the Tron network, citing risk management framework among other factors, while still maintaining support for transfers to other blockchains until February 2025.
With over $26 billion worth of tokens in circulation, USDC is the second-largest stablecoin after Tether (USDT) and plays a crucial role in the cryptocurrency ecosystem.
Risk Management Invoked
In a strategic move to enhance trust and security surrounding its stablecoin, Circle has decided to discontinue USDC support on the Tron network. This decision comes after a rigorous evaluation as part of Circle’s risk management framework, aiming to maintain the high standards associated with USDC.
Implications for Users and Distribution of USDC
While USDC is present on multiple blockchains, with dominance on Ethereum where over $22 billion worth of tokens are in circulation, the Tron network hosted approximately $300 million worth of USDC. Circle’s phased transition plans to support client transfers of USDC to other blockchains until February 2025, providing a transitional period for individual users and non-Circle clients through exchanges.
