Nikolas Sargeant
Upholding Stability and Trust with USDC
In a recent blog post, Circle, the creator of the world's second-largest stablecoin, announced the termination of support for the TRON network. While the immediate halt of new USDC minting on TRON is in effect, ongoing support for the stablecoin will continue until February 2025.
According to Circle, users of USDC on the TRON network have a one-year window to exchange their tokens for USDC on alternative networks or for traditional USD. This process can be completed directly with Circle or through various exchanges supporting the stablecoin.
"As part of our risk management framework, Circle continually assesses the suitability of all blockchains where USDC is supported. Our decision to discontinue support for USDC on TRON is the result of an enterprise-wide approach involving business organization, compliance, and other functions across our company. This aligns with our commitment to ensuring that USDC remains a trusted, transparent, and safe regulated digital dollar on the internet."
The decision comes amid SEC fraud allegations against TRON's creator, Justin Sun, with TRON and its native token, TRX, playing crucial roles in the accusations. Despite Circle not specifying the reasons for withdrawing support, it is likely that the fraud allegations and recent exploits on the TRON network influenced the stablecoin issuer's decision.
Tether Continues Dominance on TRON
Recent data from Reflexivity Research revealed that TRON has surpassed Ethereum in the use case of USDT by 8%. This dominance is complemented by USDT's significant contract share on the network, with approximately 95.6% of all contracts linked to the world's most-used stablecoin.
Despite TRON's traction in the stablecoin market, USDC will no longer be in competition with its primary rival on this specific network. Currently, USDC's total market cap stands at just over $28 billion, as per CoinGecko, experiencing a decline from its ATH of $56 billion before the SVB collapse. Circle has also filed for an IPO, though specific details were not disclosed by the company.
