Coinbase and Circle issued a joint statement on August 21 which revealed that the USDC stablecoin will be launching on 6 additional blockchains. This move is to increase the adoption of the USD-backed stablecoin.
In a recent development, crypto exchange Coinbase, and Circle – management behind the stablecoin, stated in a blog post on Coinbase’s official website that USDC will be launching on 6 new blockchains between September and October this year. However, the post did not mention which blockchains will now support the coin.
These new additions will raise the total number of supported blockchains to 15 and also increase USDC’s momentum with developers globally. Furthermore, the support for new blockchains will allow USDC to cater to more businesses and applications that use the stablecoin as their on-chain dollar. The blog post did not include the names of the blockchains where USDC will be launched in the coming months.
Coinbase and Circle Dissolves Centre Consortium
Meanwhile, Coinbase and Circle also revealed the dissolution of Centre Consortium in the blog post. Centre Consortium was jointly founded by Coinbase and Circle in 2018 and served as a self-governance consortium for USDC.
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The companies attributed the reason for this move to the growing regulatory clarity for stablecoins in the United States.
“Circle and Coinbase […] have agreed that with growing regulatory clarity for stablecoins in the U.S. and around the world, the requirement of a separate governance body like Centre is no longer needed,” the post said
The company will cease to exist as a “stand-alone entity” and the issuance of USDC will be done by Circle henceforth. This move will bring all operational responsibilities in-house.
Furthermore, Circle will take control of all the smart contract keys and will be responsible for complying with governance regulations as well as being in charge of enabling USDC on new blockchains.
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Coinbase Takes Equity Stakes in Circle
Moving forward, Coinbase revealed that it will be taking equity stakes in Circle as part of a new agreement. With the investment, both companies will now develop better economic alignment on the development and growth of the financial system.
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Coinbase reiterated its commitment to the growth of the stablecoins ecosystem, particularly the long-term success of USDC. The new agreement will allow Coinbase and Circle to generate and share revenues based on the amount of the stablecoin held individually on each of their platforms. In addition, the interest generated from a wider distribution of USDC will be shared by both companies.
Stablecoins have proven to be a major element in the world of cryptocurrency. It enables global users to directly have access to the United States dollar and other pegged fiat currencies. The purpose of stablecoins is to be widely available and transparently backed 1:1 with the pegged currency.
Since the launch of USDC in September 2018, it has grown to be the second-largest stablecoin in the world just after Tether USDT.
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.