By Hassan Mehmood (Saudi Arabia)
Coinbase Global has introduced new changes in the USDC management systems. The listed company has invested in equity stakes in Circle. Furthermore, Circle and Coinbase alliance is dismantling the Centre Consortium for USDC.
The new changes are in line with the expansion of Circle scalability. Coinbase Global has added support for USDC stablecoin to six new blockchain networks. For context, it is important to note that Centre Consortium is standardization project for stablecoin market starting with USDC.
Coinbase has maintained that it is implementing regulatory changes to Circle stablecoin. Coinbase noted in a new blog post that it is going to increase its investment stake in the stablecoin project.
To this effect, Coinbase officials have maintained that the companies are now working towards bringing strategic and economic partnership regarding the governance and direction of USDC ecosystem. Coinbase has maintained that USDC will generate considerable income streams for the enterprise.
Centre Consortium for USDC Adds New Management Panel
Centre Consortium was a joint management governance project for USDC stablecoin. Coinbase has retained that the segregated administrative model for Circle is repetitive therefore it is halted.
The new government panel for the USDC reserve will continue to add new functionality to the stablecoin. Coinbase and Circle will collect interest income generated from the token. It means that Centre will not act as the sole entity for managing USDC. The total market cap for USDC stands at $25 billion.
In addition, Circle will continue to issue the token. To this effect, central governance and operational responsibilities will take place as ventured endeavours. Circle is pegged to USDC stablecoin and it is pegged to US dollar.
However, the new structure is going to add to its accountability and the company retains that it will now wholly manage the issuance and governance matters for USDC.
USDC is undergoing expansion regarding blockchain hosting. The token is now available on 6 different blockchain networks. The scalability to Circle network is set to finalize on September and October.
It also translates that the digital dollar blockchain accessibility will now increase to a total of 15 blockchains. On the other hand, the companies have decided to continue to collaborate in a commercial capacity.
At the same time, exchanges listed at NASDAQ have assured their investors that USDC is not undergoing any changes on Coinbase. It means that Coinbase intends to offer support for USDC within the allotted regulations.
USDC is the biggest stablecoin in terms of stablecoins market cap. The second largest project in this category is Tether or USDT. Ripple attorney John Deaton has maintained that sans SEC lawsuit, Coinbase might have purchased stake in Ripple rather than Circle.
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