Coinbase Partnering With Circle Brings USDC To 6 New Blockchains

Key Points:

• According to the announcement, Coinbase is increasing support for stablecoins with an investment in Circle.
• USDC will launch on 6 new blockchains from September to October, bringing the stablecoin’s multi-chain accessibility to 15 blockchains.
• Coinbase and Circle will share the revenue from USDC reserve interest income based on the number of these stablecoins held on each platform.

Coinbase and Circle have announced a commercial partnership to jointly support the development of the 2nd largest stablecoin USDC market.

In a recent announcement, leading US cryptocurrency exchange Coinbase has reached a strategic investment agreement with Circle Internet Financial, the company behind the market’s second-largest stablecoin, USDC. However, the two did not disclose details about the value of the investment deal.

The agreement between the two parties agreed to dissolve the Center Consortium, the joint venture established between Coinbase and Circle to manage USDC issuance. Instead, Circle will remain as the issuer of USDC, bringing any Center governance and operations responsibilities in-house.

The partnership plan will help USDC launch on 6 new blockchains from September to October, bringing USDC’s multi-chain access to 15 to accelerate USDC’s momentum with developers worldwide further.

Coinbase and Circle will continue to generate revenue from USDC reserve interest income. Under the parties’ new agreement, this revenue will continue to be shared based on the amount of USDC held on each platform. In addition, both will now equally share the interest income generated from the distribution and more widely used USDC.

With this partnership, CEO Circle has expressed his belief that USDC will grow stronger in the future.

“Two of the largest and most important global (and US-based), well-regulated players are going to drive hard to continue to make USDC the most widely used digital dollar in the world.”

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