Coinbase invested in Circle, which will now be fully responsible for controlling USDC.
The second stablecoin on the market will launch on six new networks.
The stablecoin USD Coin (USDC) happens to have the Circle company as the maximum responsible for its issuance and governance. Thus, the Center consortium, which administered the sixth most capitalized cryptocurrency on the market, ceases to have effect.
Anyway, the exchange Coinbase, which was part of that consortium, does not ignore the USDC project. Rather, the exchange will own an equity stake in Circle and both companies will “maintain their business relationship,” according to a report. release signed by Jeremy Allaire, CEO of Circle, and Brian Armstrong, CEO of Coinbase.
Circle and Coinbase agreed that, “with increasing regulatory clarity for stablecoins in the United States and around the world, the requirement for a separate governing body such as Center is no longer necessary,” the post says. In this way, the “new structure” centralizes in Circle tasks such as the management of all smart contract keys, compliance with regulations on the governance of reserves and the enablement of USDC in new networks.
On the other hand, the current association between the companies determines that Coinbase becomes a shareholder of Circle. In this way, the exchange claims to “reflect a belief in the fundamental importance of stablecoins to a broader ‘crypto-economy’.”
Both companies partnered five years ago to create what, in August 2023, is the second stablecoin on the market. USDC has a capitalization of USD 26,000 million and controls approximately 20% of the marketaccording to DefiLlama.com.
“Since then, stablecoins have proven to be a fundamental element of the ‘crypto-economy,’ allowing users around the world to easily access US dollars and other currencies with the benefits of cryptocurrencies: a fast, reliable exchange of value. , safe and programmable”, emphasize the entrepreneurs in their announcement.
Coinbase and Circle will continue to generate revenue from interest income from USDC reserves. (…) these revenues will continue to be shared based on the amount of USDC held on each of our platforms, and in addition, we will now equally share the interest income generated from the broader distribution and use of USDC.
Jeremy Allaire, CEO of Circle, and Brian Armstrong, CEO of Coinbase.
USDC will reach 6 new networks
Beyond the news about the issuance of USDC and the corporate agreements between the companies, it was also announced that USDC will launch on six new networks in the near future. More precisely, this will take place between September and October, they detail.
No details were given about which networks are in question. At the moment, USDC is available on nine networks, among which Ethereum, Tron, Avalanche, Polygon, Arbitrum, BNB Chain and Solana stand out. With which it will add, it will reach 15 native networks for the availability of its users, who also have tools for direct exchanges between networks such as CCTP (Cross-Chain Transfer Protocol), developed by Circle itself.
One of the great candidates to join this group is Base, the second layer (L2) network of Ethereum that we have talked about in detail in other CriptoNoticias articles. Base was released to the public on August 9, and many protocols will implement their developments on this new second layer.