It has just come to light that Coinbase is the co-founder of Centre and USD Coin alongside its occasional rivalry with Circle. As a user, you can now buy and redeem USD Coin through both Coinbase and Circle which gives users easy access to some of the most popular exchanges in the US. In the announcement it states:
“Coinbase and Circle share a common vision of an open global financial system built on crypto rails and blockchain infrastructure, and realizing this vision requires industry leaders to collaborate to build interoperable protocols and standards. CENTRE was formed to establish these standards and to build the technology needed for fiat to work over the open internet.”The announcement continues to say:
“Customers can tokenize dollars into USDC and redeem USDC into dollars through both Circle and Coinbase, making USD Coin the industry’s first open, fungible and interoperable fiat stablecoin.”The Circle co-founder and CEO Allaire explained about the firms joining forces in an email stating:
“Coinbase joining us to co-found CENTRE and launch USDC reinforces the value of a shared, standard, interoperable stablecoin. Like internet standards, USDC is now not owned by one single company, but distributed among network participants according to clear rules, regulations, and collectively-owned software.”Currently, there are over a hundred stablecoins in the space, all of which are aiming to capitalise on any potential issues with Tether. Even though most of them are quite unlikely to de-throne the already firmly established leading stablecoin, the Coinbase and Circle backed USD Coin is probably the only one which has the name recognition and institutional backing to stand up to it. As put by CoinJournal, A stablecoin is a digital currency that has a price that remains at (or around) a corresponding fiat currency, in most cases the US Dollar. There are now over a hundred stablecoins in existence but Tether is still the most popular. However, accusations have plagued the leading stablecoin of not actually being backed by a fiat currency and that the firm behind it is having some financial problems. Nevertheless, nothing is proven at the time of writing but suspicion alone has caused some issue with what has essentially been a very successful venture. What are your thoughts? Let us know what you think down below in the comments!