Coinbase, one of the leading cryptocurrency exchanges in the US, has decided to invest in Circle, the stablecoin issuer of USD Coin (USDC). USDC was created in partnership between Coinbase and Circle in 2018, and they have been jointly managing the asset under the Centre Consortium.
Coinbase CEO addresses new announcement
However, in a recent announcement, Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire revealed that Circle will now take on all of the governance and operational responsibilities for USDC.
The CEOs reveal the following:
“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.”
According to Armstrong and Allaire, Coinbase is set to acquire an equity stake in Circle.
The two companies will still earn revenue from USDC reserves interest income, but under the new agreement, the revenue will be shared based on the amount of USDC held on each platform.
Furthermore, both companies will now equally share in interest income generated from the wider distribution and usage of USDC.
The CEOs also announced that USDC, currently the second-largest stablecoin by market cap, will be launched on six new blockchains between September and October, but did not disclose which ones specifically.
New BTC and ETH predictions are out
According to a well-known cryptocurrency expert, Bitcoin and Ethereum, the two leading digital assets by market cap, may face difficult times ahead.
Nicholas Merten, who has a substantial following of 511,000 subscribers on DataDash, has cautioned that the markets are declining further due to a lack of support from bulls.
The ascending support line of Ethereum is at risk, and if bulls do not provide the necessary support, the situation could worsen.
The point of distribution and supply hitting the market was at $2000, and if bulls do not appear soon, the year-long bullish pattern in progress could lose its confirmation. It is essential to take this warning seriously and act accordingly to prevent further damage to the market.
