Circle Takes Charge of USDC, Coinbase Secures Minority Share

Coinbase secures a minority stake in Circle, enabling Circle to oversee USDC operations for increased stability and growth.

Brian Armstrong happy, Jeremy Allaire coming out the circle with open arms.
Created by Kornelija Poderskytė from DailyCoin
  • Coinbase has signed a new partnership.
  • The company acquired a minority stake in Circle.
  • The partnership will see Circle take on new responsibilities regarding USDC governance.

In a strategic move, crypto exchange Coinbase has acquired a minority stake in Circle Internet Financial. The announcement was shared by the two companies on their respective websites.


While this is not the first official partnership between the companies, following their joint launch of USDC in 2018, the new arrangement is meant to solidify their strategic and economic alignment on the future of the financial system.

The Deepening Commercial Relationship

As part of the move, the two companies have agreed to dissolve their Centre Consortium partnership, a venture that exits the market after five years at the helm of USDC governance due to the emergence of stablecoin regulations worldwide. The issuance and governance of USDC will now be done in-house, with Circle assuming enhanced responsibilities.

The new structure will streamline the operations and governance and enhance the direct accountability of Circle as the issuer, including holding all the smart contract keys, complying with regulations on the governance of reserves, and enabling USDC on new blockchains,” read the announcement.

Following the new partnership agreement, Coinbase and Circle will continue deriving revenue from USDC reserves interest income, where profits will be shared based on individual stablecoin holdings.

USDC Expansion

The announcement disclosed that USDC will soon be launching on six new blockchains between September and October. While the statement didn’t name the exact platforms, Circle announced in September 2022 that USDC would launch as a native stablecoin on Cosmos (ATOM), Polkadot (DOT), Optimism (OP), Arbitrum (ARB), and NEAR (NEAR) blockchains.

USDC is available natively on Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Flow (FLOW), Stellar (XLM), TRON (TRX), Algorand (ALGO), and Hedera (HBAR). Being the second largest stablecoin with a market cap of $26 billion, the new Coinbase-Circle partnership will likely propel the growing USDC ecosystem to new circulation and global adoption heights.


Learn more about Coinbase crypto exchange and its influence in the industry:
Coinbase: The People’s Cryptocurrency Exchange

Here is how Coinbase is making inroads into untapped markets:
Coinbase Resists Canadian Crypto Exodus with “Official Launch”

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.