Key Points:
- Centre Consortium dissolved as Circle takes over all USDC issuance.
- USDC aims to launch 6 more blockchains to expand developer access.
- Coinbase purchases equity in Circle to boost USDC collaboration.
Centre Consortium, the joint governance body that issues the popular USDC stablecoin, was dissolved after Coinbase acquired a stake in stablecoin issuer Circle. The move consolidates USDC entirely under Circle, aiming to expand the token’s reach.
Centre Consortium Shuttered
Launched in 2018, Centre Consortium was founded by Coinbase and Circle to manage and govern the issuance of the USDC stablecoin. However, with regulatory clarity around stablecoins increasing globally, the companies have decided to close Centre as a separate entity.
Circle will now assume full control over all USDC governance and operations. The shift is intended to streamline processes and enhance accountability as the sole USDC issuer.
Circle will also take over key responsibilities like holding reserve keys, managing token burns and minting, and launching USDC on new blockchains. Consolidating control under one issuer is expected to help accelerate USDC’s growth.
Broadening Blockchain Support for USDC
A core part of USDC’s expansion involves launching 6 additional blockchains between September and October this year. This will bring the total number of chains supported to 15. Expanding to new chains will increase accessibility for developers and users who want exposure to a digital dollar in crypto applications.
As innovations in speed, security, and scalability advance across blockchain networks, bringing USDC to more chains allows it to serve emerging crypto communities. USDC aims to cement its position as the go-to on-chain dollar for businesses and developers.
Coinbase Takes Equity Stake in Circle
With its increasing focus on stablecoins, Coinbase has acquired a minority equity stake in Circle as part of the rearrangement. The two firms were already closely aligned as co-founders of USDC.
The latest investment further cements their strategic relationship as leaders in the stablecoin space. It signals Coinbase’s long-term confidence in both USDC specifically and the overall stablecoin sector.
The companies will continue to share profits from interest earned on USDC’s fiat reserves. They will also benefit equally from interest income generated from broader USDC circulation and usage.
Summary
With Centre shuttered, Circle is now fully empowered to advance USDC’s mission as an on-chain digital dollar. The strengthened alignment with Coinbase also bodes well for USDC’s growth prospects within crypto finance. As it expands across chains and use cases, USDC seems poised to increase its circulation and utility.
Join MEXC and Start Trading Today!
