Coinbase and Circle Dissolve Centre Consortium Partnership
Coinbase, a US-based cryptocurrency exchange, has secured a minority stake in payment company Circle, as both entities dissolve their Centre Consortium partnership. The partnership had played a significant role in the issuance of the second-largest stablecoin, USD Coin (USDC). This move comes as a response to regulatory uncertainty and competition from other stablecoins, such as Tether and PayPal’s PYUSD. USDC was launched in 2018 as a stablecoin pegged to the US dollar. Coinbase joined the Centre Consortium as a distribution partner, and the stablecoin has since grown significantly, bringing profits to both Coinbase and Circle.
Key Points:
1. Coinbase and Circle dissolve their Centre Consortium partnership.
2. The dissolution is due to regulatory uncertainty and competition from stablecoins.
3. USDC, the second-largest stablecoin, was launched in 2018.
4. The new agreement will see interest income being shared equally.
5. Coinbase continues to expand, recently entering the Canadian market.
Hot Take
Despite facing regulatory challenges, Coinbase shows resilience and continues to expand its operations and partnerships. By securing a minority stake in Circle and dissolving its partnership with Centre Consortium, Coinbase takes a strategic step to navigate the evolving stablecoin landscape. This move allows Coinbase to maintain its position as one of the largest cryptocurrency exchanges in the world and adapt to regulatory changes while capitalizing on growth opportunities.
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