Coinbase invests in stablecoin operator Circle
Coinbase (COIN), a US-based cryptocurrency exchange, has secured a minority stake in a payment company Circle. This collaboration comes as both entities take the significant step of dissolving their Centre Consortium partnership, which had been instrumental in the issuance of USD Coin (USDC), currently ranked as the world’s second-largest stablecoin . An updated agreement According to Fortune, this updated agreement was made on Monday, Aug. 21, which comes as a response to regulatory uncertainty and potential competition from stablecoin s, including Tether and now PayPal’s new stablecoin , PYUSD. USDC was originally launched in 2018 as a stablecoin pegged to the U.S. dollar, an action that would theoretically fix the assets price to $1. The idea was first created by Circle, and the company went on to build a consortium called Centre to govern the stablecoin . Coinbase later joined this consortium as a distribution partner in preparation for the launch of USDC. Following th...