Binance Phases Out USDC Transactions on Tron Network in Transparency Push

In a move reflective of the evolving landscape of cryptocurrency operations, Binance announced on Monday its decision to discontinue the use of the Tron blockchain network for deposits and withdrawals of the dollar-pegged stablecoin, USDC. Stablecoins, digital currencies designed to maintain a stable value by being pegged to traditional currencies, operate across various blockchain technologies.

This decision follows closely on the heels of Circle, the Boston-based crypto entity behind USDC, which recently ceased the issuance of its tokens on the Tron network. Circle articulated this move as part of its ongoing commitment to maintaining USDC as a trustworthy, transparent, and secure digital asset.

Effective from April 5 at 0200 GMT, Binance will halt support for USDC transactions via Tron. However, Binance reassured its users that trading of USDC and transactions via other supported blockchain networks would remain unaffected, as detailed in a recent blog post.

The announcement comes amid no immediate response from Tron, whose founder Justin Sun, a well-known figure in the crypto space, faced legal challenges last year from the U.S. Securities and Exchange Commission over allegations related to trading volume manipulations and unauthorized security sales. Sun has contested the SEC’s allegations as unfounded.

USDC holds a significant position in the crypto market as the eighth largest cryptocurrency and the second-largest stablecoin by circulation, with Ethereum being the primary blockchain host for the majority of its $32.1 billion in circulation. Prior to Circle’s discontinuation on Tron, Tron-based USDC accounted for approximately $335 million.

Moreover, recent reports have spotlighted Tron’s association with crypto transfers linked to groups designated as terrorist organizations by several countries, although Tron spokespeople have distanced the platform from such activities, citing the decentralized nature of blockchain technology.