Binance Halts USDC Deposits and Withdrawals on TRON Network

After over a month since Circle ceased USDC support on the TRON network, Binance has now made a similar decision.

Binance Halts USDC Deposits and Withdrawals on TRON Network. Image: CoinJournal

According to today's announcement, Binance will halt the functionality of depositing and withdrawing USDC on the TRON blockchain starting from 09:00 AM on April 5, 2024 (Vietnam time).

Announcement of USDC Deposit and Withdrawal Suspension on TRON Network from Binance

Users can still trade USDC on Binance and deposit/withdraw this stablecoin via other networks (such as Ethereum) as usual.

Today's decision by Binance seems to have been foreshadowed at the time when stablecoin issuer Circle announced the cessation of USDC issuance on TRON last month. At that time, Circle did not specify the reason but stated that the action was within the framework of the company's risk management.

Circle will continue to support Circle Mint customers to convert USDC to other blockchains until February 2025. The company urges general users to proactively swap USDC on TRON to another exchange or network.

Allocation of USDC supply across top blockchains. Source: The Block

In November 2023, Circle began terminating accounts with TRON founder Justin Sun and related companies, asserting its non-involvement in any illicit activities within this ecosystem.

Meanwhile, Sun and the TRON Foundation have been facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) since March last year. U.S. authorities accused the TRON founders of inflating transactions and conducting unauthorized securities offerings.

Despite reducing exposure to USDC, TRON still holds a significant portion of USDT supply compared to its rival Tether.

Allocation of USDT supply across top blockchains. Source: The Block