Binance Ends USDC Support on Tron: Users Have 12 Days to Act

Key Takeaways

  • Binance discontinues support for USDC transactions on the Tron blockchain by April 5.
  • TRON network users are left to explore alternative options like Solana, BNB Smart Chain, and Ethereum.
  • Binance's move may be linked to compliance concerns amid ongoing legal battles.

Binance announced on March 25 that it would no longer support USDC transactions on the Tron blockchain, including deposits and withdrawals of the stablecoin.

Binance Offers 12 Days Timeline to Transfer USDC

In a notice shared on X, holders of TRC-20 USDC have about two weeks to convert, transfer, or sell the stablecoin before the set deadline on April 5, 2024, 02:00 AM GMT.

With a circulating supply of $32.1 billion, USDC is the seventh-largest cryptocurrency and second-largest stablecoin in the crypto market after Tether (USDT).

The TRON network is a network of choice for many traders due to its quick confirmation and low fees. Following the suspension of USDC TRC-20 transactions, customers are left with options like Solana, BNB Smart Chain, Ethereum networks, and others.

Binance’s latest announcement is touted to be a cause-effect of Circle’s discontinuation of creating its dollar-pegged USDC on the Tron blockchain. According to Circle, its decision stems from a routine risk management effort that assesses the suitability of all networks where USDC is supported.

Crypto experts and community members believed Binance’s suspension of USDC transactions over Tron could be its way of maintaining compliance with financial authorities, considering the series of litigations it faces.

The exchange’s former CEO, Changpeng Zhao (CZ), awaits his criminal sentencing in the US while its US subsidiary remains embroiled in a legal tussle with the SEC.

The Tron network was established in 2014 by Justin Sun but is overseen by the Tron Foundation. Last week, another Sun-linked stablecoin, TrueUSD, was delisted from Binance. The dollar-pegged stablecoin saw its market cap crash by 50% from $1.2B to $615 million following a series of mass redemptions of the stablecoin.

Tron Could See Wrapped USDT Amid Regulatory Check

While the Tron network seems to be losing its influence on USDC, the blockchain network continues to thrive, following the development of a Bitcoin layer-2 solution to merge its tokens with the Bitcoin network.

According to an X announcement on February 15, Sun disclosed that the proposed integration with Bitcoin will link TRON with Bitcoin and enable access to over $55 billion in value on the Bitcoin network.

While still in an early conceptual phase, the platform plans to leverage existing cross-chain networks to bridge USDT and other tokens between Bitcoin and TRON. This will lead to collaborations with various Bitcoin layer-2 protocols.