Binance Ends Support for USDC Deposits and Withdrawals Via Tron

In a press release on March 25, crypto exchange Binance announced its decision to end support for deposits and withdrawals of USD Coin (USDC) — a prominent dollar-pegged stablecoin — through the Tron (TRC20) network. 

As of April 5, at 02:00 AM (UTC), users will no longer be able to process USDC transactions utilizing the Tron network. Investors have 12 days to transfer, convert, or cash out their TRC-20 USDC tokens from the exchange. According to Binance, users will still be able to trade USDC on the platform. Moreover, deposits and withdrawals via other supported networks (e.g., Ethereum) will remain unaffected.

Following Circle’s discontinuation of USDC support on the Tron network (TRC20), Binance will cease support for USDC deposits and withdrawals via TRC20 starting from 5 April 2024, 02:00 am UTC.

Users may continue trading USDC on Binance. Deposits and withdrawals of USDC via other…

— Binance (@binance) March 25, 2024

Circle Drops Support for USDC on Tron

Binance’s move follows the footsteps of Circle, the issuer of USDC, which on February 20 announced plans to discontinue its support for USDC on Tron by February 2025. Circle said the move aligns with “efforts to ensure that USDC remains trusted, transparent and safe.” The company also stopped minting USDC on Tron the same day. Like Binance, Circle did not provide a reason for the move.

Circle stated:

“Our decision to discontinue support for USDC on TRON is the result of an enterprise-wide approach that involved the business organization, compliance and other functions across our company.”

Last year, Tron founder Justin Sun faced a lawsuit by the US Securities and Exchange Commission (SEC). The regulator accused him of artificially inflating trading volume and selling Tron tokens as unregistered securities. Sun vehemently denied the allegations, saying they lacked merit.

Binance has a track record of compliance with the changing landscape of crypto regulations and partner ecosystem policies, showcasing its dedication to user security and market adaptability. The crypto community on social media platform X (formerly Twitter) largely supported Binance’s decision.

USDC, with a circulation of around $32.1 billion, is currently the eighth-largest cryptocurrency and the second-largest stablecoin after Tether (USDT). Data from usdc.cool, a platform monitoring USDC across various blockchains, shows that more than $172 million worth of liquidity is locked in USDC on TRON, representing 0.54% of the total supply. This amount exceeds the liquidity locked in other networks, like Optimism ($118 million) and Polygon ($168 million).

According to Nansen data, Binance has allocated about $1.7 million in USDC, representing around 0.01% of its token allocations on the Tron network. Meanwhile, Binance’s TRC-20 holdings, exceeding $13.5 billion, are allocated in USDT, constituting 98.2% of its holdings on the network.