Binance will no longer facilitate deposits and withdrawals of the USD-pegged stablecoin USDC using the Tron blockchain network.
In a Monday press release, the crypto exchange announced its decision to cease support for Tron’s TRC-20-based USDC deposits and withdrawals from April 5.
The platform gave investors 12 days to convert, transfer, or cash out their TRC-20 USDC tokens from Binance.
Binance clarified that users would still be able to trade USDC on their platform.
Additionally, deposits and withdrawals of USDC through other supported networks would remain unaffected.
Circle Drops Support for USDC on Tron
Binance’s move to drop support for USDC on Tron comes as Boston-based crypto firm Circle made a similar decision to halt the creation of USDC tokens on the Tron blockchain.
Following Circle’s discontinuation of USDC support on the Tron network (TRC20), Binance will cease support for USDC deposits and withdrawals via TRC20 starting from 5 April 2024, 02:00 am UTC.
Users may continue trading USDC on Binance. Deposits and withdrawals of USDC via other…
— Binance (@binance) March 25, 2024
Circle cited the need to ensure the transparency, trustworthiness, and safety of USDC as the reason behind their move.
“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 company said on X.
Tron, founded by prominent crypto entrepreneur Justin Sun, has not yet responded to Reuters’ request for comment regarding Binance’s decision.
Last year, Sun faced a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which accused him of artificially inflating trading volumes and selling Tron tokens as unregistered securities.
Sun vehemently denied the allegations, stating that they lacked merit.
With a circulation of approximately $32.1 billion, USDC currently stands as the eighth-largest cryptocurrency and the second-largest stablecoin after Tether.
Most USDC tokens in circulation are based on the Ethereum blockchain, according to Circle’s website.
Additionally, a Reuters report from December further complicated TRON’s image.
According to the report, TRON outshined its competitor Bitcoin, as the preferred platform for organizations labeled as terrorist groups to transfer crypto.
Prior to Circle’s discontinuation of Tron-based USDC support, approximately $335 million in USDC was hosted on the Tron blockchain.
Tether Surpasses $100 Billion Market Cap
In early March, Tether’s USDT surpassed a market capitalization of $100 billion, with an impressive growth of 9% year-to-date.
Comparatively, USDT maintains a lead of over $71 billion in market cap when compared to its closest competitor, USD Coin (USDC).
Despite the success, concerns about the quality of assets backing USDT have lingered in the crypto space.
A recent United Nations report highlighted Tron’s popularity among cyber fraud and money laundering activities in Southeast Asia.
Tether has refuted these claims, emphasizing its collaboration with law enforcement and the traceability of its token.
In response to the UN report, Tether said that its collaboration with global law enforcement, including the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the United States Secret Service (USSS), has resulted in unparalleled monitoring capabilities, surpassing traditional banking systems.
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