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Circle has halted the minting of USDC stablecoins on the Tron network due to the necessity of adhering to regulatory standards. In contrast, Tether has published a transparency report revealing that over half of USDT is minted on Tron.
Circle has declared that it will no longer provide support for the Tron blockchain network, resulting in the discontinuation of USDC stablecoin minting. Users have the option to transfer their assets to other blockchain networks or convert them to fiat through Circle Mint until February 2025.
The company stated that the primary reason for discontinuing support on the network is to maintain the trust, transparency, and safety of USDC, suggesting that the Tron blockchain does not fulfill these criteria. Officials from the company also highlighted that their risk management framework consistently assesses the appropriateness of all blockchains endorsed by Circle.
Notably, Circle’s announcement also mentioned that the choice to cease support for USDC on the Tron network was “the result of an enterprise-wide approach.” This indicates that the decision was made by a majority of the board of directors, who opted to pursue an initial public offering (IPO) in the U.S. in January.
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Clearly, Circle’s withdrawal from the Tron blockchain network is closely linked to its ambition to become a publicly traded company. Prior to its filing with the Securities and Exchange Commission (SEC), the company faced accusations of facilitating terrorism and money laundering. The Campaign for Accountability (CfA), a non-profit ethics organization, in a letter to U.S. senators, alleged that Circle had connections to the Tron Foundation and its founder, Justin Sun. In the same correspondence, Michelle Kuppersmith, Executive Director of the CfA, asserted that transactions involving criminal organizations and sanctioned entities traverse the Tron network. Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, refuted these claims and any association with Justin Sun, the Tron Foundation, or Huobi Global.
In a public statement, Circle reiterated that the accounts belonging to Sun and his subsidiaries were closed in February 2023, although the U.S. government has not officially categorized Tron’s founder as a “special category” citizen. Sun is currently facing one open case regarding the SEC’s allegations of distributing unregistered securities and market manipulation.
In light of Circle’s complete disavowal of any connection with Tron, it is noteworthy that Tether, the company’s primary competitor in the stablecoin sector, seemingly has no intention of withdrawing support for the network. The latest transparency report indicates that Tron hosts over 51.8 billion USDT, which constitutes more than half of all minted tokens. In 2023, approximately 13 billion new USDT were issued on the Tron network.
Tether plans to maintain its support for Tron, even after UN analysts identified USDT of the TRC-20 standard as the most widely used digital asset among participants in the shadow economy in Southeast Asia.
Tether representatives dismissed the UN’s allegations, asserting that the organization lacks the requisite understanding of blockchain technologies to substantiate such claims.
Сообщение Circle Stops Supporting Tron Network in Anticipation of IPO появились сначала на CoinsPaid Media.
