The leading crypto exchange Coinbase announced that it is taking an equity stake into USDC issuer company Circle.
With the investment, both the companies will have greater strategic and economic alignment on the financial system, says the announcement blogpost.
“Coinbase is committed to the long term success of the stablecoin ecosystem and USDC, specifically,” Coinbase said in the blogpost adding, “Coinbase and Circle will continue to generate revenue from USDC reserves interest income.”
The blogpost also briefs that USDC stablecoin will expand to 6 new blockchain networks between September and October. After launching on other 6 chains, USDC will be available on 15 blockchains.
Coinbase and Circle both are founding companies of Centre Consortium, the governance entity for USDC. It said that with growing regulatory clarity over stablecoins, a separate governance body is no longer needed.
“Centre will no longer exist as a stand-alone entity and Circle will remain as the issuer of USDC,” Coinbase said.
Coinbase has significantly supported USDC’s development and growth since its inception. As such, offering a $3 billion fund in its pegging crisis.
The new structure will now jointly oversee operations and governance while enhancing Circle’s role with full control over issuance and management of USDC.
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