Coinbase Global has revealed its plans to secure an ownership share in Circle Internet Financial, a prominent player in the cryptocurrency realm. Simultaneously, the collaborative endeavour known as the Centre Consortium, responsible for overseeing the stablecoin USD Coin (USDC), will be disbanded.
In response to the increasing lucidity of regulatory guidelines governing stablecoins both domestically and internationally, Coinbase elucidated in a recent blog post that the requirement for a distinct administrative body such as Centre has become obsolete.
Consequently, Circle will assume complete authority over the issuance and management of USDC, a role it previously shared only as the coin's issuer. Notably, stablecoins are cryptographic tokens designed to maintain a consistent value by being linked to a dependable underlying asset, serving as a hedge against the tumultuous price fluctuations often associated with cryptocurrencies.
In the instance of USDC, its value remains tethered to the US dollar.
Anticipating an expansion in accessibility, the company has unveiled its strategy to introduce USDC onto six new blockchain platforms, a rollout scheduled between September and October. This strategic move will elevate the multi-chain compatibility of USDC to encompass a total of 15 blockchains.
Crucially, both Coinbase and Circle will persist in reaping profits from the interest accrued on reserves of USDC. Under the newly devised agreement, revenue-sharing will persist, predicated on the volume of USDC held on the respective platforms of each company.
As reported by Reuters, Coinbase said that it is henceforth committed to an equitable distribution of the interest income stemming from the wider proliferation and utilisation of USDC.
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