- Coinbase and Circle are making significant changes to the USD Coin (USDC).
- The Centre consortium, initially created by Coinbase and Circle to manage USDC, will no longer exist as an independent entity.
- USDC is set to expand to six new blockchain networks.
Coinbase and Circle are overhauling the management of USD Coin (USDC), leading to the dissolution of the Centre consortium and expansion to new blockchain networks.
End of the Centre Consortium
Originally, the Centre consortium, formed by Coinbase and Circle, was responsible for the management of USDC. However, after five years of operation, both companies have agreed that a separate management body like Centre is no longer necessary. As a result, Circle announced that Centre will cease to exist as an independent entity, with Circle taking over the management and operational responsibilities of USDC.
Coinbase Acquires Equity Stake from Circle
In exchange for this agreement, Coinbase will acquire an equity stake from Circle. Both Coinbase and Circle will continue to earn interest income from the reserves of USDC.
Expansion to Six New Blockchains
Another significant development for USDC is its expansion to six new blockchain networks. Although the specific networks were not disclosed, it was announced that USDC would be available on these networks between September and October. Last September, Circle had planned to launch USDC on Arbitrum, Cosmos, Near, Optimism, and Polkadot. Since then, the stablecoin has been launched on Arbitrum but has not yet been integrated with the other networks.
Conclusion
In conclusion, the changes to USDC signify a shift in its management structure and an expansion in its reach. As the cryptocurrency landscape continues to evolve, such developments are crucial in maintaining the relevance and utility of stablecoins like USDC.
