The Dissolution of Centre Consortium and Coinbase’s Acquisition of Circle
Centre Consortium, the issuer of the second-largest stablecoin USDC, has been dissolved as Coinbase acquires a minority share in Circle Internet Financial. Circle will now be the sole issuer of USDC, while Centre will no longer exist as a stand-alone entity. The revenue from interest earned on the dollar reserves backing USDC tokens will be shared equally between Circle and Coinbase. Additionally, USDC will be launched on six new blockchains by the end of October, expanding its availability to 15 different networks.
Key Points:
– Coinbase acquires a minority share in Circle Internet Financial, leading to the dissolution of Centre Consortium.
– Circle will become the sole issuer of USDC stablecoin.
– Revenue from USDC token reserves will be split equally between Circle and Coinbase.
– USDC will be launched on six new blockchains, increasing its availability to 15 networks.
– USDC is the second-largest stablecoin by market capitalization, behind Tether’s USDT.
Hot Take
With Coinbase’s acquisition of a minority share in Circle and the dissolution of Centre Consortium, Circle’s position as the sole issuer of USDC solidifies its role in the stablecoin market. The expansion of USDC to new blockchains demonstrates its growing adoption and availability. This move allows Coinbase to maintain its revenue stream through shared interest from USDC reserves. Overall, this development strengthens the position of Circle and Coinbase in the crypto industry and further establishes USDC as a prominent stablecoin.
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