Cryptocurrency exchange Binance has announced that it will no longer support USDC deposits and withdrawals through the Tron network (TRC20).
USDC is a digital stablecoin pegged to the US dollar and backed by fiat currency.
This decision was made by Binance after technology company Circle said it would no longer mint USDC on TRON.
"Our decision to discontinue support for USDC on TRON is the result of a company-wide approach that included business organization, compliance, and other functions within our company. This action is consistent with our efforts to ensure that USDC remains trustworthy, transparent, and secure – parameters that make it the leading regulated digital dollar on the Internet," Circle said in a message.
Binance points out that deposits of USDC tokens via TRC20 will no longer be credited to users' accounts after 02:00 UTC on April 5, 2024.
However, users will still be able to trade the asset, and USDC deposits and withdrawals via other supported networks will continue as usual.
The actions of Binance and Circle point to a potential trend in the cryptocurrency industry, where concerns about the reliability of certain blockchain networks are causing major players to reevaluate their participation.
More cryptocurrency exchanges and companies are prioritizing risk management and compliance, indicating a desire to adapt to evolving market dynamics and regulatory frameworks.
As a reminder, on March 15, Binance suspended spot token trading in TUSD and BNB. The COMP/TUSD, EDU/TUSD, and PENDLE/TUSD pairs, as well as ARPA/BNB and EDU/BNB, were removed from the listing.
See also: Experts warned of an impending wave of volatility in the BTC market
