Top US crypto exchange by trading volume Coinbase invests in USD Coin (USDC) stablecoin issuer Circle.
Coinbase and Circle co-founded USDC in 2018 and jointly manage the asset, which aims to maintain its peg to the US dollar, through the Center Consortium.
However, in a new announcement, Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire participation that Circle will now bring all USDC governance and operational responsibilities in-house.
Explain the CEOs,
“The new structure will streamline operations and governance and increase Circle’s direct accountability as a publisher, including ownership of all smart contract keys, compliance with reserve management regulations, and enabling USDC on new blockchains.”
Coinbase will also buy an equity stake in Circle, according to Armstrong and Allaire.
“Coinbase and Circle will continue to generate interest income from USDC reserves. Under the parties’ new arrangement, this income will continue to be shared based on the amount of USDC held on each of our platforms, and in addition, we will now share equally in the interest income generated by the wider distribution and the using USDC.”
In addition, the CEOs note that USDC, the second-largest stablecoin by market capitalization, plans to launch six new blockchains between September and October, although they did not specify which ones.
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Generated image: Midjourney