According to similar announcements posted on the Coinbase and Circle blogs on August 21, Coinbase and Circle have revised their relationship. The USD Coin stablecoin was jointly introduced by the two institutions, and the Centre Consortium has up to now served as the token’s governing body.
Circle and Coinbase Redefine Their Relationship and Enter a New Era
Amidst increasing regulatory scrutiny in the US and other countries, the largest US-based cryptocurrency exchange, Coinbase, said that it had bought a share in Circle, the creator of the USDC stablecoin.
Given that the USDC issuer had been losing market share during the previous year, this might be an excellent development for Circle as well. The combined revenue Circle and Coinbase receive from the USDC coin “will continue to be shared based on the amount of USDC held on each of our platforms, and additionally, we will now equally share in interest income generated from the broader distribution and usage of USDC,” Circle wrote in a blog post on August 21.
Coinbase’s Share Price is Unknown
Co-founder and CEO of Circle, Jeremy Allaire, stated in a post on X (formerly Twitter) that Circle and Coinbase are deepening and extending their business connection, with Coinbase taking an equity stake in Circle. The share of Coinbase was given no value.
On the other hand, according to the blog posts, the new arrangement will improve the firms’ strategic and financial congruence. Based on their stablecoin holdings, they will continue to divide interest income.
Centre is to be Terminated
The Centre Consortium, which oversees the USD Coin stablecoin, was founded by both Coinbase and Circle. Coinbase announced that it would be closing the Centre in a blog post. According to Coinbase, Circle will now take up the responsibility of issuing USDC, and the Centre organization will no longer function independently. As a result of this modification, Circle will assume all of the Centre’s governance and operational duties.