Cryptocurrency exchange Coinbase bought a minority stake in Circle Internet Financial as part of an “expansion of support for stablecoins.”
According to the agreement, the Center consortium, which was managed by both companies, will be abolished. He was responsible for issuing the USDC stablecoin, now it will be issued only by Circle.
In addition, in September-October, the stablecoin will be launched on six new blockchains. As a result, their total number will reach 15. The company did not name specific protocols, but earlier it was reported about plans to expand to Polkadot, Near, Optimism and Cosmos.
Both companies will receive equal percentage income from USDC reserves.
Allaire previously spoke about a $1 billion “airbag” that the firm plans to use to bolster its competitive advantage. Since the beginning of the year, USDC capitalization has fallen from $44.5 billion to $26.2 billion.
According to CEO Circle, the confrontation in the market will grow with the entry of an increasing number of new players. The appearance of PYUSD from PayPal is just the beginning, the head of the issuer expressed confidence.
In May, Coinbase launched an international digital asset futures exchange, Coinbase International Exchange. On August 18, trading volume on the platform reached a record $287 million.
Source: Cryptocurrency
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