With insights from the announcements made on the Coinbase and Circle blogs on August 21, 2023, Coinbase and Circle have redefined their bond. The two organisations are expected to have jointly launched the USD Coin (USDC $1.00) stablecoin. It is believed that till now the tokens have been governed through the Centre Consortium, stated Cointelegraph.
Sources revealed that the Centre Consortium “will no longer exist as a stand-alone entity,” adding that the governance and operations will be handled in-house. Circle is expected to have improved responsibilities, including holding smart contract keys and regulatory compliance, Cointelegraph added.
“Circle and Coinbase […] have agreed that with growing regulatory clarity for stablecoins in the U.S. and around the world, the requirement of a separate governance body like Centre, is no longer needed,” Jeremy Allaire, co-founder, CEO, Circle, explained.
Furthermore, the new arrangement is expected to improve the firms’ strategic and economic collaboration, Cointelegraph concluded.
(With insights from Cointelegraph)