Circle, the issuer of major stablecoin USD Coin (USDC), announced on Wednesday that it will no longer support USDC on the Tron blockchain. The discontinuation of support will be phased out, with immediate cessation of USDC minting on TRON.

The decision to discontinue USDC support on TRON was part of Circle’s ongoing risk management framework, which evaluates the suitability of all blockchains supporting USDC. Circle stated that this move aligns with its commitment to ensuring that USDC remains a trusted, transparent, and safe digital dollar.

As part of the transition, Circle will assist its Circle Mint users in transferring their USDC to other blockchain networks until February 2025. Additionally, clients have the option to redeem their USDC holdings for fiat currency directly with Circle. Retail USDC holders and non-Circle users are advised to use retail trading platforms to redeem or transfer their USDC holdings.

Stablecoins like USDC are cryptocurrencies pegged to fiat currencies, such as the U.S. dollar, and are backed by a reserve of underlying assets. USDC is the second-largest stablecoin after tether (USDT), with a supply exceeding $26 billion. The majority of USDC tokens are on the Ethereum blockchain, with smaller amounts on Solana, Polygon, and Tron.

Despite these changes, Tron’s native TRX tokens remained stable, trading at 13 cents during Asian morning hours on Wednesday.

Tron Founder Justin Sun stirred up the cryptocurrency market earlier this weeks with a hefty $500 million transfer. The transaction, originating from JustLend, a platform endorsed by Sun, has raised eyebrows as it swiftly moved to HTX, a platform where Sun holds a prominent advisory position. This significant transfer gained attention thanks to data from Whale Alert.

Sun’s involvement in JustLend, a Tron-based financial platform recognized for its stUSDT offerings, complicates the implications of the transaction. Additionally, an extra $642.06 million USDT was channeled to JustLend from an undisclosed wallet, suspected to be linked to Sun, further adding to the speculation within the crypto community.

The exact reasons behind Justin Sun’s $500 million transfer remain unclear, leading to various theories and discussions within the crypto world. Some suggest it might be a strategic move to infuse liquidity into HTX, thereby strengthening the platform Sun advises.