In a significant development within the cryptocurrency ecosystem, Centre Consortium, the issuer of the second-largest stablecoin USDC, has been dissolved. This news comes as Coinbase, a prominent player in the crypto industry, acquires a minority share in Circle Internet Financial. The dissolution of Centre Consortium was confirmed through a blog post released by the involved parties.
According to the joint blog post authored by Circle CEO Jeremy Allaire and Coinbase CEO Brian Armstrong, Centre will no longer maintain its independent existence. Instead, Circle will take over the responsibility of issuing USDC, thereby assuming the governance and operational roles previously held by Centre. Furthermore, the blog post indicated that the revenue generated from the interest accrued on the dollar reserves backing USDC tokens will now be evenly divided between Circle and Coinbase.
Circle, the issuer of USD Coin (USDC), which is the largest publicly traded crypto exchange, has historically maintained a connection with Coinbase through its consortium. The consortium was originally established in 2018 as a collaborative initiative between Circle and Coinbase. At its inception, the consortium aimed to encourage widespread industry participation and the introduction of additional USDC issuers.
As a result of the recent developments, Circle will become the sole issuer of USDC. Additionally, the blog post revealed that USDC is set to expand its presence by launching on six new blockchains by the end of October. Although the specific networks were not mentioned, this expansion will bring the total number of networks supporting USDC to 15.
USDC has consistently held its position as the second-largest stablecoin based on market capitalization. Presently valued at just under $26 billion, USDC remains behind Tether (USDT), which boasts a market capitalization of approximately $83 billion according to Coingecko.
The dissolution of Centre Consortium and the shifting dynamics in the USDC ecosystem mark a notable milestone in the ongoing evolution of the cryptocurrency landscape. These developments signal a shift in how USDC will be issued and governed, potentially influencing the broader market dynamics of stablecoins and their role within the digital economy.
Source: Decrypt
