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Coinbase Steps Down, Circle Assumes Full Position for USDC as Issuer

Published 22/08/2023, 12:18
Coinbase Steps Down, Circle Assumes Full Position for USDC as Issuer
COIN
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  • USDC will be expanding to six new blockchains from September to October.
  • Circle will assume full responsibility for USDC as the issuer, including all governance and operational aspects.
  • Coinbase (NASDAQ:COIN) has taken an equity stake in Circle, ensuring greater cooperation and synergy in shaping the future of the financial system.

According to a recent announcement, Circle and Coinbase, the pioneering entities behind Centre Consortium, have reached a pivotal decision regarding USDC’s governance structure.

The press statement highlighted that the firms reevaluated the necessity for a separate governing agency as regulatory clarity regarding stablecoins grows in the United States. Circle and Coinbase have concluded that Centre will cease to exist as a standalone entity.

Circle will now assume full responsibility for USDC as the issuer, including all governance and operational aspects previously managed by Centre. This revamped structure aims to enhance operational efficiency, streamline governance, and reinforce Circle’s direct accountability as the issuer of USDC.

Furthermore, the shift includes Circle’s role in managing smart contract keys and adhering to regulatory guidelines on reserve governance. Also, Circle will facilitate the integration of USDC onto new blockchains.

In the same announcement, Circle unveiled plans to expand the reach of the USDC stablecoin across multiple blockchains. USDC will go live on six new blockchains from September to October. This move will elevate USDC’s existing chain count to fifteen.

Circle CEO Jeremy Allaire took to Twitter to share the development, with Coinbase CEO Brian Armstrong commenting on it.

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