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This Major Stablecoin Firm Will Cease TRON Blockchain Support Amid IPO Push

2 mins
Updated by Kyle Baird
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In Brief

  • Circle discontinues USDC support on TRON, offering transfers to other blockchains or fiat redemption till February 2025.
  • Circle recently filed for a US IPO, following the trend of crypto firms like Coinbase becoming publicly traded.
  • USDC has the second highest market cap in the stablecoin category behind the market leader Tether (USDT).
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Circle, a major stablecoin firm, has announced it will cease support for USDC (USD Coin) on the TRON blockchain. This move comes amid the firm’s strategic push towards an Initial Public Offering (IPO) in the United States.

Effective immediately, Circle will discontinue minting USDC on TRON, marking the start of a phased transition.

Circle’s USDC Cuts Ties With TRON

The decision reflects Circle’s commitment to maintaining USDC as a trusted, transparent, and safe digital dollar.

“As part of our risk management framework, Circle continually assesses the suitability of all blockchains where USDC is supported,” a Circle spokesperson stated.

For Circle Mint customers, the company will facilitate the transfer of USDC to other blockchains until February 2025. Additionally, users can redeem USDC on TRON for fiat currency directly with Circle.

Read more: A Guide to the Best Stablecoins in 2024

Retail USDC holders and non-Circle customers have the option to transfer USDC between blockchains or redeem it for fiat currency through global services, including retail exchanges and brokerages.

The USDC issuer’s decision aligns with its broader growth strategy and IPO ambitions. Having considered going public since last year, Circle confidentially filed for a US IPO last week.

While shying away from any specific details, the action appears to be a step towards falling in line with regulatory standards.

“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,” the press release concluded.

IPO Plans and Market Cap Update

This move follows the trend set by other crypto firms like Coinbase, establishing crypto entities as viable publicly traded companies in the US.

“The IPO is expected to take place after the Securities and Exchange Commission completes its review process, subject to market and other conditions,” Circle revealed.

Read more: What Is a Stablecoin? A Beginner’s Guide

USDC, the second-largest stablecoin after Tether’s USDT, holds a significant place in the digital currency market. With a market cap of $26.8 billion, USDC accounts for nearly 20% of the stablecoin market dominance. The two stablecoins combined control nearly 90% of the total stablecoin market share.

Stablecoin dominance and market cap. Source: DefiLlama
Stablecoin dominance and market cap. Source: DefiLlama

Circle’s strategic pivot and IPO plans reflect a palpable shift in the crypto sector, where regulatory compliance, market stability, and institutional adoption are becoming increasingly important. This move reinforces USDC’s position as a leading regulated digital dollar but also sets a precedent for the future of crypto firms in the public market.

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Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.

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Kyle Baird
Kyle migrated from the East Coast USA to South-East Asia after graduating from Pennsylvania's East Stroudsburg University with a Bachelor of Science degree in 2010. Following in the footsteps of his grandfather, Kyle got his start buying stocks and precious metals in his teens. This sparked his interest in learning and writing about cryptocurrencies. He started as a copywriter for Bitcoinist in 2016 before taking on an editor's role at BeInCrypto at the beginning of 2018.
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