Cryptocurrency investors on Binance have 12 days to exchange their holdings in USDC. A Cointelegraph article reported that Binance has halted support for USDC coin and directed the users on the platform to convert, transfer, or withdraw their reserves out of their Binance holdings.
The exchange platform noted that it will halt deposit and withdrawal support for TRC-20 USDC tokens on Binance within 2 weeks.
On 20th February, Circle announces the plan to discontinue support on the Tron blockchain. The stablecoin issuer noted that the decision was aligned with the plans to make sure that USDC is a trusted, transparent, and safe token.
Circle halted USDC minting on the Tron blockchain on the same day of making the announcement and noticed that it plans to gradually stop support from the blockchain entirely.
The announcement of the Circle resulted in a domino effect that entailed Binance following the decision. On 25th March, Binance announced the decision to halt support for TRC-20 based USDC deposits and noted that it will halt all transaction support for the stablecoin before 15th April. Crypto account holders on Binance now have 12 days to process their TRC-20 USDC coins.
Binance will Continue to Support USDC on Other Blockchains
Binance will continue to support USDC stablecoin issued by other blockchains on their platform. The decision of the exchange platform was largely supported by the cryptocurrency community on X platform.
On the other side, Circle has yet to give a detailed account of its decision to halt Tron support. The stablecoin issuer has only retained that it will continually assess the suitability of all host blockchains as part of its risk management strategy.
Cointelegraph reached out to spokesperson at Tron who noted that the blockchain has not received any additional communication from Circle about why it retracted support without notifying the network in advance.
Tron as a Layer-1 Blockchain
Tron is a layer-1 blockchain that is working on a layer-2 solution that would support the wrapped version of Tether. This integration will link Tron to Bitcoin and facilitate access to more than $55 billion in value on the Bitcoin network.
In this manner, Bitcoin will be able to bring financial vitality to Bitcoin as per Tron founder Justin Sun. He was sharing the roadmap of Tron for Bitcoin layer-2 solution. This project aims to enable stablecoins and tokens to transfer between Bitcoin and Tron networks.
Coinbase is set to move its customer and corporate USDC holdings to Base. David Hoffman co-host of Bankless podcast noticed that Coinbase is paving the road towards on-chain financial system.
Coinbase to Move USDC Balance on Base Protocol
Coinbase has noticed in its recent notification the plans to move retail and commercial USDC holdings to Base, an Ethereum-based layer-2 blockchain that was launched 7 months ago.
On this front, Coinbase president Max Branzburg posted an update on 26th March noting that this move will allow crypto exchange to manage and secure account holder funds at lower fees and faster settlement speed.
The firm noticed that the change will impact Coinbase.com accounts and will not be applicable to Coinbae wallets. The firm noticed that reserves on Coinbase wallets are self-custodial and grant private key management to the account holders. Meanwhile, user funds on Coinbase.com are controlled by a multiparty computation custodian.
Branzburg further stated that Coinbase has ensured that its customer funds are backed by 1:1 and has a policy against lending funds out unless approved. Coinbase’s on-chain move is going to carve a path toward future on-chain financial systems as per Hoffman.
His co-host Ryan Sean Adams opined that this strategy will set a precedent for cryptocurrency exchanges and banks to act in the same manner. Sean Adams noted that all assets are future token and all banks are future chains.
However, there are some users have expressed reservations regarding this move. One such is callmeKapp.algo on X who claimed that Base is very centralized in the existing state. However, Coinbase has shared the plan to decentralize Base overtime.
