Binance, the leading cryptocurrency exchange, is set to discontinue the support for deposits and withdrawals of USD Coin (USDC) tokens based on the TRC-20 protocol from the Tron blockchain, effective April 5.
This decision follows an announcement on February 20 by Circle, the issuer of USDC, regarding its move to halt the support for the stablecoin on the Tron network.
Circle’s choice is part of a broader strategy to maintain USDC’s reliability, transparency, and security. Alongside ceasing its support,
Circle also ceased the minting of USDC on Tron’s blockchain on the same date, with a plan to fully phase out its involvement with this network.
The impact of Circle’s decision extended to Binance, which, due to its significant trading volume, plays a crucial role in the cryptocurrency market.
Binance’s announcement to end TRC-20 USDC support came on March 25, providing a 12-day window for users to manage their assets accordingly.
Although Binance will stop facilitating deposits and withdrawals of TRC-20 USDC tokens, the platform will continue to support USDC trading activities beyond the cut-off date.
It’s important to note that this change will not affect USDC transactions over other blockchains supported by Binance, and the decision has garnered positive feedback within the crypto community on social media platform X.
Circle has not explicitly stated why it chose to withdraw support for Tron, mentioning only a continuous evaluation of blockchain platforms within its risk management strategy.
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In response to these developments, a Tron representative expressed to Cointelegraph that the blockchain was left in the dark about the specifics behind Circle’s decision and was not notified prior to the public announcement.
Amidst these changes, Tron is exploring innovative approaches to maintain its relevance and utility within the cryptocurrency ecosystem.
Notably, Tron’s founder, Justin Sun, has shared plans to implement a Bitcoin layer-2 solution aimed at introducing a “wrapped” version of Tether to the network.
This initiative is expected to bridge Tron directly with Bitcoin, potentially unlocking access to over $55 billion in Bitcoin network value.
Sun’s announcement outlines a roadmap for integrating stablecoins and tokens between Tron and Bitcoin, which could significantly enhance Bitcoin’s financial ecosystem.
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