In a significant development, Coinbase and Circle have reached a new agreement that brings changes to the governance and funding of USD Coin (USDC).
– Coinbase has acquired an equity stake in Circle for the first time.
– The Centre Consortium, which previously governed USDC, will be closed.
– Revenue will still be divided based on the amount of USDC held on each platform, but interest income from off-platform USDC will be equally shared.
– Circle CEO Jeremy Allaire expressed satisfaction with the revised arrangement, emphasizing its fairness and alignment for long-term success.
– Coinbase and Circle will focus on driving USDC’s growth to retain its position as a leading stablecoin option.
Hot Take
The new agreement between Coinbase and Circle marks an important step for the governance and funding of USDC. By sharing interest income from off-platform USDC and focusing on overall success rather than individual minters, the partnership aims to strengthen USDC’s position in the stablecoin market. With evolving regulatory challenges and increasing competition, the collaboration between Coinbase and Circle will be crucial for driving USDC’s growth and adoption.
By
By
By
By