US-based compliant exchange Coinbase has officially acquired a stake in stablecoin issuer Circle. Through this strengthened partnership, USDC will launch on 6 new blockchain networks within the next two months, expanding its multi-chain accessibility to 15 networks.
Today Coinbase and Circle announced a few updates to USDC. Stablecoins will be a key component of a new updated financial system, and we look forward to helping unlock additional utilities and growing the USDC ecosystem.
Circle Takes Over Center Consortium Operations
In 2018, Circle and Coinbase formed the Center Consortium joint venture to oversee USDC issuance and revenue sharing. However, with clearer stablecoin regulations emerging globally, both companies determined that an independent governance body like Centre was no longer necessary. Circle will now incorporate Centre's governance and operational responsibilities internally as USDC's sole issuer.
This streamlined structure enhances Circle's direct accountability by:
- Holding all smart contract keys
- Ensuring reserve governance compliance
- Enabling USDC on new blockchains
Coinbase's Strategic Investment in Circle
The new agreement reflects Coinbase's belief in stablecoins' fundamental role in the crypto economy. Key aspects include:
- Coinbase acquires equity in Circle while continuing stablecoin collaboration
- Both companies will share interest income from USDC reserves based on platform holdings
- Coinbase users retain existing USDC benefits (gas-free transfers, rewards)
👉 Discover how major exchanges are shaping stablecoin adoption
USDC's Multi-Chain Expansion
As part of enhanced cooperation, USDC will launch on 6 additional blockchains between September-October 2023, achieving:
- 15 supported networks total
- Accelerated global developer adoption
- Expanded DeFi interoperability
Core Keywords:
- USDC ecosystem
- Coinbase investment
- Circle partnership
- Stablecoin expansion
- Multi-chain integration
- DeFi development
- Crypto regulations
- Blockchain interoperability
FAQ Section
Q: How does this affect existing USDC holders?
A: No changes for holders—USDC remains 1:1 redeemable and fully reserved.
Q: Which new blockchains will support USDC?
A: Specific networks haven't been disclosed, but likely include emerging EVM-compatible chains.
Q: Why eliminate Center Consortium?
A: Regulatory clarity allows simplified governance under Circle as primary issuer.
👉 Explore the future of stablecoin innovation
Risk Considerations
Cryptocurrency investments carry substantial risk due to price volatility. Investors could lose their entire principal. Conduct thorough risk assessment before participating.