Circle will launch six new blockchains between September and October.
Centre will no longer exist as a stand-alone entity.
Coinbase, the leading crypto exchange, is increasing its support for stablecoins with an investment in Circle.
Moreover, the stablecoin provider Circle and Coinbase will also maintain a commercial relationship. The two firms jointly launched the stablecoin USD Coin five years ago. Now the Circle will take full operational and governance responsibility.
On August 22, Circle released a blog post announcing its redefined commercial relationship with the crypto exchange Coinbase. The two firms have agreed with the regulatory clarity on stablecoins in the U.S. and around the world. USDC will launch six new blockchains between September and October.
Coinbase and Circle Reach a New Agreement
According to the blog post, the requirement of a separate government body like the Centre is no longer needed. Moreover, the Centre will no longer exist as a stand-alone entity. It brings governance and operation responsibilities in-house. The new structure will enhance responsibilities, including holding smart contract keys and regularity compliance.
Jeremy Allaire, the CEO and co-founder of Circle, has tweeted that Circle and Coinbase are extending and deepening their commercial relationship, with the crypto exchange taking an equity stake in Circle. Moreover, there is no value stated for the Coinbase share.
As a part of this partnership, the crypto exchange and Circle have reached a new agreement. The two firms will now have even greater strategic and economic alignment for the future of the financial system. Moreover, Coinbase and Circle will continue to generate income from the USDC reserves. The crypto exchange is committed to the long-term success of stablecoins, especially USDC.