Coinbase Boosts USDC Storage on Base Network, Advocates for On-Chain Migration
Crypto News – In an announcement on March 26, Max Branzburg, Vice President of Product at Coinbase, revealed the company’s intention to bolster its storage of USDC on the Base network. He emphasized this strategic shift, stating, “Going forward, Coinbase is going to be storing more corporate and customer USDC balances on Base.” Branzburg highlighted the benefits of this move, citing improved fund management, enhanced security, reduced fees, and faster settlement times, assuring users of an unchanged experience.
Encouraging other enterprises to follow suit, Branzburg underscored the advantages of transitioning business operations onto blockchain infrastructure.
Here’s the breakdown of Coinbase’s current USDC holdings, according to data from Arkham Intelligence: The platform currently possesses a total of $220.7 million worth of USDC, with only 17% ($37.4 million) stored on the Base network. The majority, approximately 70%, totaling 155.1 million USDC, resides on the Ethereum blockchain. The remaining 13% is spread across various other chains, including Arbitrum ($17.2 million), Avalanche ($4.9 million), Optimism ($5.1 million), Polygon ($1.0 million), and BNB Chain ($38,557).
The relocation of hundreds of millions of dollars in USDC to the Base network stands to significantly impact the overall USDC balance on the chain. However, it’s important to note that while Coinbase’s holdings are substantial, they represent only a fraction of USDC’s $32.3 billion market cap, with Ethereum housing the lion’s share at $27.2 billion. Consequently, shifts in Coinbase’s USDC balance are unlikely to substantially alter USDC’s broader distribution on Ethereum.
Previously a key player in governing USDC via the CENTRE consortium, Coinbase relinquished this role in August 2023, transferring governance to Circle. Presently, firm maintains a stake in Circle, fostering a continued commercial relationship between the two entities.
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