Circle to Stop Supporting USDC on Flow Blockchain

Circle, the issuer of the USDC stablecoin, has announced that it will stop supporting its stablecoin on the Flow blockchain effective September 3, 2024. In a blog post on August 5, Circle announced that its decision to stop supporting USDC on Flow is due to the upcoming Crescendo upgrade. The USD-pegged stablecoin will continue to be minted on Flow until August 27, 2024, at 12:00 PM ET.

Once the deadline arrives, the stablecoin issuer will freeze all available USDC on Flow. A snapshot showing the balances of business users and institutional clients on the network will help facilitate redemptions, which will begin on September 4, 2024. Circle notes in its blog post that it only serves business and institutional clients. So Flow has provided an explanation of whats next for its USDC holders and non-Circle customers with balances on the blockchain.

According to the Flow update, the Flow team will be issuing a new wrapped token on the network within the next seven days. The wrapped token will be backed by USDC connected to the Ethereum network, allowing USDC holders to exchange them before the September 3 update.