CEOs of Coinbase and Circle, Jeremy Allaire and Brian Armstrong, have agreed to keep working together commercially while handing Circle full control over USDC.
USDC Governing
USD Coin (USDC) is a US dollar-backed multi-blockchain stablecoin. USDC was jointly issued by Circle and Coinbase. Till now, the management of USDC was with the "Centre Consortium", a joint self-governing venture of Circle and Coinbase. Now, the full responsibility of USDC will be given to Circle under the new agreement.
Reason for Governing Change
Stablecoins are speedier and less expensive in transactions, and they are becoming more popular than fiat. Henceforth, the authorities are trying to regulate stablecoins. Coinbase and Circle, two developers of the USDC, are centralised platforms; thus, they must abide by laws. USDC is used globally, and Coinbase is already dealing with lawsuits in the US.
Business is Business
• Coinbase gets stake: After giving the management of USDC to Circle, Coinbase will get a stake in it, so Coinbase will have indirect influence over USDC even if it is not managed.
• More Blockchains: Together, they will connect USDC to six new blockchains, bringing USDC to a total of 15 blockchains.
