Circle Follows Binance’s Lead by Dropping USDC Support on the Tron Network
Crypto investors using Binance have been given a 12-day window to convert, transfer, or liquidate their TRC-20 based USDC tokens. Binance, a leading cryptocurrency exchange, will cease support for deposits and withdrawals of TRC-20 based USD Coin tokens in less than two weeks. On February 20, Circle, the issuer of USDC, announced its plans to halt support for the stablecoin on the Tron blockchain, stating that the decision aligns with efforts to ensure USDC remains reliable, transparent, and secure. Circle also took steps to prevent the minting of USDC on Tron’s blockchain, led by Justin Sun, on the same day, indicating a gradual cessation of support for the blockchain network.
Circle’s decision to end USDC support on Tron triggered a domino effect, with Binance, the crypto exchange with the highest trading volume, following suit. On March 25, Binance announced its decision to stop supporting TRC-20 Tron-based USDC deposits and withdrawals starting April 5, giving crypto investors using Binance 12 days to manage their TRC-20 USDC tokens. However, the exchange will continue USDC transactions after the deadline.
Deposits and withdrawals of USDC on other supported blockchains will not be affected. The crypto community on platform X largely supported Binance’s decision. However, Circle did not provide a specific reason for ceasing support on Tron, merely stating that it continuously evaluates the suitability of all blockchains as part of its risk management process. A Tron spokesperson, speaking to Coin Telegraph at the time, mentioned that Tron had not received further information from Circle regarding the cessation of support and had not been previously informed.
Tron’s Layer 1 blockchain is exploring a Bitcoin Layer 2 solution that supports a complex version of Tether. Sun, while unveiling the roadmap for Tron’s Bitcoin Layer 2 solution, stated that this integration not only directly connects Tron with Bitcoin but also facilitates access to over $55 billion in value to the Bitcoin network, injecting financial vitality into Bitcoin and allowing stablecoins and tokens to move between Tron and Bitcoin.
