USDC Phasing Out on Tron by 2025, Circle Confirms

Circle has decided to cease support for its USD Coin (USDC) on the Tron blockchain, marking a significant shift in its operations. This decision underscores Circle’s ongoing effort to ensure USDC remains a reliable and secure digital currency. Starting now, the company will no longer mint USDC on Tron, with plans to completely withdraw support by February 2025. This change primarily impacts Circle Mint’s business customers, who will have until the cutoff date to transition their USDC holdings to supported blockchains.

Retail consumers and individuals not in direct partnership with Circle are encouraged to move their Tron-based USDC to platforms that support the stablecoin on alternative blockchains. While Circle did not specify the reasons behind ending Tron support, the company highlighted its regular assessment of blockchain platforms to align with its risk management and operational standards, which we explain in short in next paragraph. This decision involves input from multiple departments, including compliance and business strategy, reflecting a holistic approach to its blockchain engagements.

The distribution of USDC across blockchains is predominantly on Ethereum, with over $22 billion of its total circulating supply. Following Ethereum, Solana holds about $1.4 billion, and Polygon has $530 million. In comparison, Tron’s share of the USDC market is relatively smaller, with $313 million. This small share could be one of the reasons of phasing out support. Another reason could also be that Circle is readying itself to go public, and Tron is still perceived as being linked to internationally organized crime and other illicit activitites, in a move to discredit the blockchain.