CEFI

Coinbase invests in Circle to jointly develop the USDC ecosystem.

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Coinbase invests in Circle to jointly develop the USDC ecosystem.

The U.S. compliant exchange Coinbase has officially invested in the stablecoin issuer Circle. With the closer collaboration between the two parties, USDC will be launched on 6 new blockchains within the next two months, bringing the total number of chains supporting USDC to 15.

Center Consortium Functionality Now Transitioned to Circle

In 2018, Circle partnered with Coinbase to jointly oversee the issuance of USDC through the Center Consortium and share profits. However, as regulations surrounding stablecoins become clearer in the U.S. and around the world, both parties believe that the requirements of independent governance bodies like Centre are no longer necessary. Circle will continue to serve as the issuer of USDC, incorporating the governance and operational responsibilities of Center internally. This new structure aims to streamline operations and governance, strengthening Circle's direct accountability as the issuer, including holding all smart contract keys, complying with reserve governance regulations, and enabling USDC on new blockchains.

Coinbase Invests in Circle

Coinbase and Circle have reached a new agreement where Coinbase acquires a stake in Circle, continuing their collaboration on stablecoins. This move reflects Coinbase's belief in the fundamental importance of stablecoins to the broader crypto economy, as Coinbase is committed to the long-term success of the stablecoin ecosystem and USDC.

Coinbase and Circle will continue to earn revenue from interest on USDC reserves. Under the new arrangement, this revenue will be shared based on the amount of USDC held on each platform, evenly distributing the interest income generated from the broader distribution and use of USDC.

For Coinbase customers, there will be no changes to USDC on Coinbase; USDC will continue to be supported on all Coinbase platforms with the same benefits, including gas-free transfers and rewards.

With their closer collaboration, USDC will be launched on six new blockchains between September and October, bringing the total number of chains supporting USDC to 15, further accelerating USDC's adoption among global developers.