{"id":23024,"date":"2023-08-22T08:28:42","date_gmt":"2023-08-22T08:28:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/coinbase-secures-minority-stake-in-circle-ushers-in-a-new-era-for-usdc\/"},"modified":"2023-08-22T08:28:42","modified_gmt":"2023-08-22T08:28:42","slug":"coinbase-secures-minority-stake-in-circle-ushers-in-a-new-era-for-usdc","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/coinbase-secures-minority-stake-in-circle-ushers-in-a-new-era-for-usdc\/","title":{"rendered":"Coinbase Secures Minority Stake in Circle, Ushers in a New Era for USDC"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Exchanging cryptocurrencies In a calculated move, Coinbase bought a small share in Circle Internet Financial. The stablecoin industry has seen a substantial shift as a result of this development, especially for USD Coin (USDC), the second-largest stablecoin globally. With this investment comes the dissolution of the Centre Consortium partnership, which was in charge of issuing USDC, and the full takeover of governance and issuing by Circle.<\/p>\n

Additionally, by acquiring native support on six additional blockchains, USDC is extending its reach and increasing the total number of supported blockchains to an astonishing 15.<\/p>\n

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A Closer Look at the Deal<\/h2>\n

It\u2019s important to note that Coinbase did not pay money for its investment in Circle, even if the precise extent of its ownership in the company is still unknown. This tactical choice demonstrates Coinbase\u2019s dedication to expanding and diversifying its market share in the bitcoin ecosystem.<\/p>\n

Coi<\/a>nbase<\/a> and Circle did not indicate which six blockchains will soon support USDC natively in their joint statement. However, Circle has previously stated that it will combine Polkadot, Near, Optimism, and Cosmos in 2023. Notably, Coinbase has launched Base, its own project, into the blockchain space.<\/p>\n

The Shifting Landscape of Stablecoins<\/h2>\n

Recent changes have been nothing short of cataclysmic in the stablecoin market. With its PYUSD token, developed in partnership with Paxos, financial technology giant PayPal, for instance, has entered the market. Due to PayPal\u2019s enormous network for payments and remittances, this move has the potential to threaten the supremacy of stablecoins like Tether\u2019s USDT and USDC.<\/p>\n

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According to Coinbase, the use of USDC goes well beyond only exchanging cryptocurrencies. It includes topics like foreign exchange, international money transfers, and financial inclusion. The entry of PayPal into this market is viewed more as an opportunity than a competitor, according to Phil McDonnell, Senior Director of Product Management at Coinbase.<\/p>\n

\u201cI really do believe PayPal grows the pie for us,\u201d<\/em> said McDonnell. \u201cCrypto is so small today compared to the overall financial world. And, so, getting a lot of people in, whether they come through the PayPal door, or some other door, a lot of them eventually will find their way to other things in crypto, including us at Coinbase.\u201d<\/em><\/p>\n

Regulatory Developments<\/h3>\n

Although stablecoin legislation is still in its infancy, there are indications of development and clarity. Bipartisan support in a crucial U.S. House of Representatives committee has been given to the Clarity for Payment Stablecoins Act of 2023, which is a big step towards regulatory clarity.<\/p>\n

Dante Disparte, Circle\u2019s Chief Strategy Officer and Head of Global Policy, emphasized this growing regulatory clarity. He also highlighted Circle\u2019s recent achievement of a Major Payment Institution License in Singapore. \u201cNot only are we at a point where we can retire the Centre Consortium, but doing so makes patent sense because of clarity in the marketplace around regulating stablecoins,\u201d<\/em> noted Disparte.<\/p>\n

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A Strategic Move Amid Growth<\/h3>\n

Significant accomplishments have been made along the way for Circle, including a $400 million capital investment from well-known companies like BlackRock and Fidelity Investments. BlackRock and Fidelity both recently made news by looking into the possibility of issuing spot bitcoin ETFs.<\/p>\n

Recently, Circle streamlined its employees in order to retain a solid financial position while concentrating on its core business operations.<\/p>\n

Coinbase and Circle will continue to make money from interest on USDC reserves under this new arrangement. Based on the total quantity of USDC owned by each platform, revenue sharing will be determined. Additionally, each platform will get an equal part of interest income from USDC\u2019s wider distribution and use.<\/p>\n

As Coinbase secures its minority stake in Circle and USDC evolves, the stablecoin landscape is poised for significant changes, with the potential to bring cryptocurrency further into the mainstream financial world.<\/p>\n<\/p><\/div>\n

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(Originally posted on : Crypto News – iGaming.org ) Exchanging cryptocurrencies In a calculated move, Coinbase bought a small share in Circle Internet Financial. The stablecoin industry has seen a substantial shift as a result of this development, especially for USD Coin (USDC), the second-largest stablecoin globally. With this investment comes the dissolution of the […]<\/p>\n","protected":false},"author":34,"featured_media":23025,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/23024"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=23024"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/23024\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/23025"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=23024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=23024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=23024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}