Binance follows the circle and drops USDC support on Tron
Crypto exchange Binance will stop depositing and withdrawing TRC-20-based USD Coin (USDC) tokens within two weeks.
In the year On February 20, the USDC Issuing Circle announced plans to end support for the stablecoin on the Tron blockchain, saying the decision was in line with “efforts to ensure USDC is trustworthy, transparent and secure.”
On the same day, Circle said it would stop operating USDC on Justin Sun's Tron blockchain and gradually end support for the blockchain network.
The decision to end USDC support on Tron had a domino effect, as Binance – the crypto exchange with the highest trading volume – followed suit.
On March 25, Binance announced its decision to stop supporting Tron's TRC-20-based USDC deposits and withdrawals as of April 5.
Crypto investors using Binance are given 12 days to exchange, transfer or withdraw their TRC-20 USDC tokens from Binance. However, the exchange will continue to allow USDC transactions after some time.
USDC deposits and withdrawals are not affected by other supported blockchains. The crypto community on X supported Binance's decision.
However, Circle did not give a reason for ending support for Tron, saying only that it “continually evaluates the suitability of all blockchains” as part of its risk management process.
Speaking to Cointelegraph at the time, a Tron spokesperson said he had no further information from Serk on why Tron pulled support and that it was not announced beforehand.
Related: Watchdog Group Doubles Down on Circle-Tron Money Laundering Claims
Layer-1 blockchain Tron is considering a Bitcoin (BTC) layer-2 solution that supports a “wrapped” version of Tether (USDT).
“This integration not only directly connects Tron to Bitcoin, but also facilitates access to the Bitcoin network worth more than $55 billion, bringing financial importance to Bitcoin,” Sun said of Tron's Bitcoin Layer 2 solution roadmap to allow stablecoins and tokens to move between Tron and Bitcoin.
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