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Circle USDC is leaving Tron?

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28.02.2024

Tron (TRX) has been the most utilized blockchain network for making stablecoin payments for the past few years. However, Circle has decided to stop supporting its USDC stablecoin on the Tron blockchain.

Circle, the issuer of the $28 billion USDC stablecoin, the second largest such token, has stopped supporting its coin on the Tron blockchain. The reason for the move was a risk management systеm that “continually evaluates the suitability of all blockchains” for USDC, the company said in a blog post.

While mining on the Tron network has already ceased, Circle will gradually withdraw more than $335 million from the Tron network. USDC holders can use any of the 14 other supported blockchains to transact, send, and receive stablecoin.

In the short term, Circle’s announcement had little impact. Tron’s price reflected the movements of the broader cryptocurrency market. However, as funds of this magnitude are withdrawn from the network, TRX may experience a dip in price. But more importantly, Circle’s exit from the Tron ecosystem is a clear signal that Tron and its founder Justin Sun are not on the list of “friendly” U.S. regulators who are working so hard to satisfy Circle to become the de facto stable coin in the U.S. cryptocurrency market.

It’s also a sign of things to come, as U.S. regulators conduct a market purge to pave the way for the inevitable future of blockchain and digital currencies. As Changpeng “CZ” Zhao of Binance has shown, getting on the wrong side of regulators and the DOJ is a dangerous position to be in. It may only be a matter of time before they start going after the founder of Tron, potentially causing serious damage to the price of TRX in the future.