![[NEWS] Coinbase and Circle to end USDC issuance and management relationship, change management structure](/_next/image?url=https%3A%2F%2Fimages.microcms-assets.io%2Fassets%2F7819a9cf917e4bcd862bfa2ff5f14d24%2F1237782bb4c84159916e1aee304dd590%2Fccircle-log.jpg&w=3840&q=75)
On the 21st, Coinbase, a US cryptocurrency exchange, announced that it would dissolve its partnership with Circle, a US company, in the Center Consortium, which issues and operates the USDC stablecoin backed by the US dollar.
As a result, Circle will be solely responsible for issuing and operating USDC in the future.
Coinbase will also acquire shares in Circle to become a minority shareholder and continue to support the company. The size of the shares acquired has not been disclosed.
The two companies will continue to share interest and other revenues from the dollar reserves that back USDC. This will be distributed based on the amount of USDC held on each platform. In addition, profits from the distribution and use of USDC will also be distributed equally.
Center Consortium is a corporate entity jointly established by Coinbase and Circle, and began issuing and managing USDC, a stablecoin backed by the US dollar, in 2018.
USD Coin is the second most valuable stablecoin after Tether (USDT). Its market capitalization is about $26 billion (about 3.8 trillion yen), and it is now an important presence in the cryptocurrency industry.
According to the announcement, as regulations for stablecoins are being clarified around the world, including in the United States, Coinbase and Circle have decided that there is no need for a corporate entity such as a center consortium to manage USD Coin. Based on this, they stated that it would be more efficient in terms of governance for Circle to issue and manage USD Coin alone.
The announcement also revealed that USD Coin will be compatible with six new blockchains around September and October.
Although it has not been revealed which blockchains will be supported at this time, this will bring the number of chains that USD Coin supports to 15.
Circle will now have sole governance and management responsibility under the new structure. It will strengthen its responsibilities as an issuer, such as holding all smart contract keys, complying with regulations regarding reserve governance, and enabling USD Coin on the new blockchain.
"We look forward to working together to unlock even more value by expanding USDCoin's ecosystem, distribution, and global adoption," Coinbase CEO Brian Armstrong said in a statement.
Source:Announcement
Image: Quoted from Coinbase announcement