Circle, Coinbase Dissolve USDC’s Centre Consortium
In a joint statement, Jeremy Allaire, CEO of Circle, and Brian Armstrong, CEO of Coinbase, announced the dissolution of the Centre Consortium. Circle will now have exclusive control over the issuance and governance of USDC, while Coinbase has acquired an equity stake in Circle and expressed a stronger commitment to stablecoins.
Main Points:
- USDC will integrate with six additional blockchain networks, bringing its total connectivity to 15 chains.
- A multi-chain future for USDC will better serve individuals and businesses using the stablecoin.
- Regulatory clarity for stablecoins around the world has made the Centre Consortium’s governance system unnecessary.
- Circle will now hold the smart contract keys, ensure regulatory compliance, and manage reserves across multiple blockchain networks.
- Coinbase has secured an equity stake in Circle, and both companies will further promote stablecoins in the crypto economy.
Circle’s USDC is currently the second-largest stablecoin by market capitalization, surpassing the third-largest stablecoin, DAI.
Hot Take:
The dissolution of the Centre Consortium and Circle’s exclusive control over USDC signals a shift towards a more decentralized and regulatory-compliant stablecoin. Integrating with additional blockchain networks will enhance USDC’s accessibility and usability, benefiting individuals and businesses in the crypto economy. Coinbase’s acquisition of an equity stake in Circle demonstrates their commitment to stablecoins and their potential for growth in the future.
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