The cryptocurrency landscape is shifting rapidly, and two of its most influential players—Coinbase and Circle—are redefining their partnership in a strategic move that signals growing maturity in the stablecoin ecosystem. In a major development, Coinbase has acquired a minority stake in Circle Internet Financial, the issuer of USD Coin (USDC), while the long-standing Centre Consortium, jointly managed by both firms, is being formally dissolved. This transition marks a pivotal moment for USDC, the world’s second-largest stablecoin, as Circle assumes full control over its issuance and governance.
A New Chapter for USDC Governance
For years, the Centre Consortium served as the governing body overseeing USDC’s standards, compliance, and cross-chain interoperability. Now, with clearer regulatory frameworks emerging and increased institutional involvement, Circle is bringing all operations in-house. This move reflects a broader industry trend toward centralized, accountable governance models that align with evolving financial regulations.
Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, emphasized that regulatory clarity played a key role in this decision. “Not only are we at a point where we can retire the Centre Consortium, but doing so makes patent sense because of clarity in the marketplace around regulating stablecoins,” Disparte said. He pointed to the Clarity for Payment Stablecoins Act of 2023, which has gained bipartisan support in a key U.S. House committee, as evidence of a maturing regulatory environment.
Additionally, Circle recently secured a Major Payment Institution License in Singapore, further solidifying its status as a regulated financial entity on the global stage. These developments enable Circle to operate independently while maintaining high compliance standards—making external consortium oversight less necessary.
USDC’s Blockchain Expansion: Now Live on 15 Networks
In parallel with the governance shift, USDC is expanding its blockchain footprint by adding native support on six new chains, bringing the total number of integrated networks to 15. While the specific blockchains were not officially named, previous announcements indicate that Polkadot, Near, Optimism, and Cosmos are likely among them. The expansion strengthens USDC’s position as one of the most widely adopted stablecoins across decentralized finance (DeFi), payments, and cross-border transactions.
This multi-chain strategy ensures greater accessibility and liquidity for users worldwide. Whether traders are leveraging Layer 2 scaling solutions like Optimism or exploring interoperable ecosystems like Cosmos, native USDC support reduces friction and enhances capital efficiency.
Coinbase’s launch of its own Ethereum Layer 2 blockchain, Base, further underscores the importance of native stablecoin integration. As more platforms build around USDC, its utility grows beyond speculative trading into real-world financial applications such as remittances, payroll, and micropayments.
Strategic Investment Without Cash Exchange
Notably, Coinbase did not provide cash to acquire its minority stake in Circle. While exact ownership details remain undisclosed, the investment symbolizes a deepening strategic alliance rather than a traditional financial transaction. Both companies will continue to share revenue generated from interest on USDC reserves—distributed based on the volume of USDC held on each platform.
Under the new arrangement, they will also equally share interest income derived from broader USDC usage across the ecosystem. This revenue-sharing model incentivizes both parties to promote widespread adoption while maintaining a cooperative relationship despite the structural changes.
PayPal’s PYUSD: Competition or Catalyst?
The timing of these changes coincides with increased competition in the dollar-pegged stablecoin space. PayPal recently entered the market with its own regulated stablecoin, PayPal USD (PYUSD), developed in partnership with Paxos. Given PayPal’s massive user base and entrenched position in global payments, PYUSD could challenge the dominance of USDC and Tether (USDT).
However, Coinbase views this development as a net positive. Phil McDonnell, Senior Director of Product Management at Coinbase, believes PYUSD “grows the pie” for the entire crypto ecosystem. “Crypto is so small today compared to the overall financial world,” McDonnell noted. “Getting people in through any door—PayPal’s or another—means many will eventually explore deeper crypto use cases, including those we offer at Coinbase.”
This perspective highlights a maturing industry mindset: collaboration and expansion are more valuable than zero-sum competition.
Institutional Backing and Strategic Focus
Circle’s evolution isn’t happening in isolation. In 2022, it raised $400 million from prominent institutional investors, including BlackRock and Fidelity Investments—two asset managers actively pursuing spot bitcoin ETF approvals. Their involvement signals growing confidence in digital asset infrastructure and regulated tokenized money.
At the same time, Circle has been streamlining operations. Last month, it announced workforce reductions and the discontinuation of non-core initiatives to focus on strengthening its balance sheet and core mission: building trusted financial infrastructure.
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Frequently Asked Questions (FAQ)
Q: What is happening to the Centre Consortium?
A: The Centre Consortium, co-founded by Coinbase and Circle to govern USDC, is being dissolved. Circle will now manage USDC issuance and governance independently.
Q: How many blockchains support USDC after the expansion?
A: USDC now has native support on 15 blockchains following the addition of six new networks. Specific chains haven’t been confirmed but may include Polkadot, Near, Optimism, and Cosmos.
Q: Did Coinbase pay cash for its stake in Circle?
A: No. According to sources, Coinbase did not exchange cash for its minority ownership stake.
Q: Why is Circle bringing USDC governance in-house?
A: With clearer regulations—like the Clarity for Payment Stablecoins Act—and stronger institutional backing, Circle can operate independently while maintaining compliance and transparency.
Q: Is PayPal’s PYUSD a threat to USDC?
A: While PYUSD introduces competition, leaders at Coinbase see it as an opportunity to expand awareness and adoption of regulated stablecoins overall.
Q: Will Coinbase and Circle still collaborate on USDC?
A: Yes. They will continue sharing reserve interest revenue based on platform holdings and now equally share income from broader USDC usage.
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Conclusion
The latest moves by Coinbase and Circle underscore a transformative phase in the digital asset economy. As stablecoins become central to both decentralized applications and traditional finance integration, governance structures must evolve accordingly. By dissolving the Centre Consortium and expanding USDC’s reach across 15 blockchains, Circle is positioning itself as a leader in regulated digital currency infrastructure—backed by strategic partners and global policy alignment.
For users and institutions alike, this means greater access, enhanced trust, and more seamless cross-chain experiences moving forward.