(Bloomberg) -- The operator of the $28 billion USDC stablecoin, the second-largest such token in the digital-asset sector, axed support for the Tron blockchain created by crypto entrepreneur Justin Sun. 

The decision arose from a “risk management framework” that “continually assesses the suitability of all blockchains” for the stablecoin, its operator Circle Internet Financial Ltd. said in a blog post on Wednesday. The action “aligns with our efforts to ensure that USDC remains trusted, transparent and safe,” added Circle, which will no longer mint the token on Tron.

TRX, a token linked to the Tron blockchain, is at the center of US fraud allegations against Sun. The Securities and Exchange Commission in a lawsuit last year accused him and his firms of market manipulation to make the token appear actively traded. Sun tweeted at the time that the suit “lacks merit.” 

In a response to a request for comment about Circle’s move, Sun said that “we’re currently trying to understand the situation, and it seems to be a unilateral commercial decision by Circle.”

Stablecoins are typically pegged 1-1 to fiat currencies and backed by reserves of cash and bonds. They make up about $140 billion of the $2.1 trillion digital-asset market, according to data from CoinGecko. The blockchain-based tokens facilitate crypto trading and lending, and some commentators argue they may have a wider use in payments.

The market value of stablecoins on the Tron network stands at $51.5 billion, almost all of it accounted for by USDT or Tether, the largest stablecoin in crypto, according to data from DefiLlama. USDC, also known as USD Coin, comprises $314 million of the figure.

Last month, Circle said it had confidentially submitted plans for an initial public offering, over a year after it scrapped a bid to list via a blank-check deal.

Once worth as much as $56 billion, USDC’s circulation has been in a steady decline since it revealed it had $3.3 billion of exposure to the collapsed Silicon Valley Bank in March last year. The token temporarily veered from its peg during that period of banking stress in the US.

(Updates with Justin Sun’s comment in the fourth paragraph.)

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