Coinbase is officially acquiring a stake in $USDC stablecoin issuer Circle, according to a press release by Circle. Circle and Coinbase, the founding companies behind Centre Consortium, will no longer operate separately, according to Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire.
The press statement says that Centre will no longer exist as a stand-alone entity. Circle will remain as the issuer of USDC, bringing any Centre governance and operations responsibilities in-house. Regarding the equity stake in Circle, Coinbase says:
“Coinbase and Circle will now have even greater strategic and economic alignment on the future of the financial system. Coinbase is committed to the long-term success of the stablecoin ecosystem and USDC, specifically.”
The press release also says that under the new arrangement, this revenue will continue to be shared based on the amount of USDC held on each platform. Additionally, Coinbase and Circle will equally share interest income generated from the broader distribution and usage of USDC.
Also Read: Circle (USDC) Leverages $1 Billion Reserves Amid Shrinking Market Share
The new structure will streamline the operations and governance. It will also enhance the direct accountability of Circle as USDC issuer, including holding all the smart contract keys, complying with regulations on the governance of reserves, and enabling USDC on upcoming new blockchains.
USDC will be launching on 6 new blockchains between September and October, according to Circle.