Coinbase Global, Inc. (Nasdaq: COIN), the leading cryptocurrency exchange, today announced that it has acquired a minority stake in Circle Internet Financial, LLC (“Circle”), the issuer of USD Coin (USDC), the second-largest stablecoin by market capitalization.
As part of the investment, Coinbase and Circle are dissolving their Centre Consortium partnership, which had governed the issuance and governance of USDC. Circle will bring the issuance and governance of USDC fully in-house.
In addition, six new blockchains will integrate with USDC, taking the total to 15. The new blockchains are:
USDC is a stablecoin, which means that it is pegged to the US dollar. This makes it a popular choice for investors who want to avoid the volatility of cryptocurrencies like Bitcoin and Ethereum.
The expansion of USDC to 6 new blockchains will make it more accessible to users and developers across the DeFi ecosystem. It will also help to promote the adoption of stablecoins as a safe and reliable way to store and transfer value.
Commenting on the investment, Brian Armstrong, CEO of Coinbase, said:
“We are excited to invest in Circle and support the growth of USDC. USDC is the leading dollar-backed stablecoin and has played a critical role in the growth of the DeFi ecosystem. We believe that Circle is well-positioned to continue to lead the way in the stablecoin space.”
Jeremy Allaire, CEO of Circle, said:
“We are grateful for the support of Coinbase and its commitment to the future of stablecoins. This investment will help us to further grow USDC and expand its reach to new users and developers.”
The investment by Coinbase in Circle is a significant development in the stablecoin ecosystem. It demonstrates the growing confidence in stablecoins as a safe and reliable way to store and transfer value. The expansion of USDC to 6 new blockchains will make it even more accessible to users and developers, which is likely to further boost its adoption.