Coinbase Invests in Circle as Centre Consortium Closes

Coinbase and Circle have reached a new agreement regarding the governance and funding of USD Coin (USDC), with Coinbase taking an equity stake in Circle for the first time and the two companies shutting down the Centre Consortium. The move reflects the changing landscape of stablecoins and the need to adapt to global regulatory challenges and competition. Circle plans to expand the adoption of USDC by launching it on six new chains. The popularity of USDC has grown significantly, with its market cap rising from $500 million in 2019 to nearly $56 billion in 2022. The new agreement includes changes to revenue sharing and governance, aiming to create a fair and aligned partnership for long-term success.