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Coinbase Takes Equity Stake in Circle’s USDC, CENTRE Consortium Shuts Down

Introduction

Coinbase, one of the leading cryptocurrency exchanges in the world, has acquired an equity stake in Circle’s USDC (USD Coin), a stablecoin pegged to the US dollar. The equity stake was acquired through a deal that involved Coinbase investing $10 million, and it gives Coinbase a say in the governance and direction of the USDC stablecoin.

At the same time, the CENTRE consortium, which was responsible for the governance of the USDC stablecoin, has announced that it is shutting down its operations. The decision to shut down CENTRE came after the members of the consortium, which included Coinbase and Circle, decided that the governance of the USDC stablecoin would be better managed by individual members rather than a centralized organization.

Coinbase’s Equity Stake in Circle’s USDC

The acquisition of an equity stake in Circle’s USDC stablecoin by Coinbase is a significant move for the cryptocurrency exchange. It means that Coinbase now has a say in the governance and direction of the stablecoin. The USDC stablecoin is one of the most widely used stablecoins in the cryptocurrency market, and it has been growing in popularity in recent months.

The USDC stablecoin was launched in 2018 by Circle, a peer-to-peer payments technology company. The stablecoin is pegged to the US dollar, which means that its value is tied to the value of the US dollar. This makes it an attractive option for investors who want to avoid the volatility of other cryptocurrencies.

The CENTRE Consortium Shuts Down

The CENTRE consortium was formed in 2018 to provide governance for the USDC stablecoin. The consortium was made up of a number of cryptocurrency companies, including Coinbase and Circle. However, the members of the consortium have now decided that the governance of the stablecoin would be better managed by individual members rather than a centralized organization.

In a statement announcing the decision to shut down CENTRE, Circle said that the move was a “natural progression” for the USDC stablecoin. The company added that the USDC stablecoin would continue to operate, and that individual members of the consortium would take on the responsibility of managing the stablecoin.

Related:Shibarium Denies Bridge Issues, Calls it FUD

Conclusion

The acquisition of an equity stake in Circle’s USDC stablecoin by Coinbase is a significant move for the cryptocurrency exchange. It gives Coinbase a say in the governance and direction of the stablecoin, which is one of the most widely used stablecoins in the cryptocurrency market. At the same time, the decision to shut down the CENTRE consortium is a sign that the cryptocurrency market is maturing, and that individual members are taking on more responsibility for the governance of stablecoins.

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