Circle Ceases Minting USDC on Tron Network

Circle, the issuer of the USD Coin (USDC), has announced the discontinuation of support for the stablecoin on the Tron blockchain, citing efforts to uphold trust, transparency, and safety.

Immediate Halt in USDC Minting

In a blog post on February 20, Circle stated that it would no longer mint USDC on the Tron network effective immediately. The company plans to gradually phase out support for Tron, while continuing to facilitate USDC transfers for Circle Mint business customers until February 2025.

Urging Users to Transition

While Circle will support USDC transfers for its business customers, it urges retail users and non-Circle customers to transition their Tron-based USDC to exchanges supporting other blockchain networks where USDC is still operational.

Reasons for Withdrawal

Circle did not provide specific reasons for discontinuing Tron support, mentioning only that it continually evaluates blockchain suitability as part of its risk management process. The decision was made through a comprehensive enterprise-wide assessment involving various organizational functions.

Market Dynamics and Legal Concerns

Despite USDC's significant market capitalization of nearly $28 billion, second only to Tether (USDT), Circle has faced scrutiny over its relationship with Tron founder Justin Sun. Circle denied providing services to Sun since February 2023, following allegations of integration with Tron linked to international law enforcement actions involving alleged organized crime groups.

Legal Actions and Response

The Securities and Exchange Commission (SEC) sued Sun and the Tron Foundation in March 2023, alleging the offering of unregistered securities and manipulative trading. Tron has not immediately responded to requests for comment.

Conclusion:USDC Tron Exit: Trust & Safety

Circle's decision to cease USDC minting on the Tron network underscores its commitment to maintaining trust and safety. While no specific reasons were provided, the move aligns with ongoing risk management efforts. Despite its significant market presence, Circle has faced legal scrutiny over its association with Tron, leading to this strategic withdrawal.