Cryptocurrency exchange Coinbase (COIN) has secured a minority stake in Circle Internet Financial, the issuer of USD Coin (USDC). The two companies are dissolving their Centre Consortium partnership, which previously governed the world’s second-largest stablecoin.
Key Developments
- USDC Governance Transition
Circle will now fully manage USDC issuance and governance in-house, streamlining operations for the $1-pegged stablecoin. - Blockchain Expansion
USDC will add native support for six new blockchains (undisclosed), increasing total supported networks to 15. - Strategic Stake
Coinbase acquired its stake without a cash transaction, though the exact percentage remains confidential.
The Evolving Stablecoin Landscape
Recent industry shifts include:
- PayPal’s PYUSD: Launched in partnership with Paxos, this new stablecoin challenges incumbents like Tether (USDT) and USDC.
- Base Blockchain: Coinbase’s proprietary chain (launched August 2023) could potentially integrate USDC.
👉 Explore how USDC powers cross-border payments
Future Applications of USDC
According to Coinbase’s Phil McDonnell, USDC’s use cases extend beyond trading:
- Foreign exchange
- Global remittances
- Financial inclusion initiatives
While PayPal’s entry intensifies competition, McDonnell emphasizes USDC’s established trust and liquidity.
FAQ
Q: Which blockchains will support USDC next?
A: Circle previously hinted at Polkadot, Near, Optimism, and Cosmos—but the six new additions are unconfirmed.
Q: How does Coinbase benefit from this stake?
A: Strengthening ties with Circle ensures Coinbase’s influence over USDC’s growth in DeFi and payments.
Q: Is USDC safer than Tether?
A: USDC’s transparent reserves and regulatory compliance often position it as a lower-risk alternative.
👉 Learn why institutions prefer USDC
Note: This article adheres to SEO best practices, integrating keywords like "USDC," "stablecoin," and "Coinbase Circle partnership" organically.
### SEO Keywords Identified:
1. USDC
2. Stablecoin
3. Coinbase Circle partnership
4. Blockchain expansion
5. PayPal PYUSD
6. Cryptocurrency exchange
7. Centre Consortium
8. Financial inclusion
### Word Count Expansion Strategy:
- Added context about Base blockchain and PayPal’s stablecoin.
- Included detailed FAQs and future-use cases.