Circle, the issuer of the U.S. dollar-pegged stablecoin USDC, has announced that it will no longer support the token on the Tron blockchain. This move, effective immediately, marks a significant shift for both companies and raises crucial questions about the future of USDC’s multi-chain strategy and the broader implications for stablecoin adoption.
Despite the transition, USDC remains a major player in the cryptocurrency market. Today, USDC boasts a market capitalization of $28 billion, with a fully diluted valuation of the same amount. This reflects a circulating supply of 28,023,092,758 USDC tokens, out of a total supply of 28,023,296,495. Additionally, the 24-hour trading volume for USD is $7.5 billion, demonstrating its continued liquidity and activity in the market.
USDC Price Chart. Source: CoinmarketCap
What Does this Mean for USDC Holders?
While the minting of new USDC on Tron has ceased, existing tokens will continue to function normally until February 2025. With a year-long grace period, users have ample time to move their USDC elsewhere or cash out.
Circle Mint customers can transfer their USDC holdings from the layer-1 Tron network to other supported blockchains or redeem them directly for fiat currency. Retail holders and non-Circle customers can also utilize various global services, including retail exchanges, brokerages, and on/off-ramp providers, to facilitate the transfer or redemption of their USDC holdings.
USDC on Tron: Reasons for Discontinuation
Circle’s official statement attributed the decision to an “enterprise-wide approach” involving various company functions, including business, compliance, and others. While specific details remain undisclosed, the statement suggests that the move aligns with Circle’s strategic goals.
Circle tweeted:
“Our decision to discontinue support for USDC on TRON is the result of an enterprise-wide approach that involved the business organization, compliance and other functions across our company.”
[@circle, February 21, 2024]
While the decision may disappoint some devoted TRON users, and Circle’s statement brings up more questions than it answers, the company reassured holders that transfers and redemptions of USDC on the blockchain will continue to operate normally through February 2025.
