The cryptocurrency landscape continues to evolve, and one of the most significant recent developments involves two major industry players—Coinbase and Circle. In a strategic shift that underscores growing regulatory maturity and market confidence, Coinbase Global has announced it will take an equity stake in Circle Internet Financial while dissolving their jointly operated entity, Centre Consortium.
This move marks a pivotal moment for the stablecoin ecosystem, particularly for USD Coin (USDC), one of the most widely used dollar-pegged digital assets in the blockchain space.
A New Chapter for USDC Governance
For years, Centre Consortium served as the governance body overseeing the issuance and standards of USDC. It was co-founded by Coinbase and Circle to ensure transparency, interoperability, and compliance across blockchain networks. However, with increasing regulatory clarity around stablecoins—especially in the United States—the need for a separate governance layer has diminished.
As stated in a recent blog post by Coinbase, “With growing regulatory clarity for stablecoins in the United States and around the world, the requirement of a separate governance body like Centre is no longer needed.” This acknowledgment reflects a broader trend: digital asset frameworks are maturing, enabling issuing entities to operate with greater autonomy under established legal guidelines.
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Under the new structure, Circle will assume full control over USDC issuance and governance. Previously responsible only for minting and redeeming tokens, Circle now steps into a more centralized yet streamlined role. This transition not only simplifies operations but also enhances accountability—a key factor for institutional adoption and regulatory trust.
Expanding USDC’s Blockchain Footprint
In tandem with these structural changes, Coinbase revealed an ambitious expansion plan for USDC. The stablecoin is set to launch on six additional blockchains between September and October 2025. This will bring the total number of supported chains to 15, significantly improving multi-chain accessibility and utility.
Such expansion aligns with the growing demand for cross-chain interoperability. Developers, decentralized finance (DeFi) protocols, and enterprises increasingly rely on stablecoins that can move seamlessly across ecosystems—from Ethereum and Solana to emerging Layer 1 and Layer 2 solutions.
By broadening USDC’s reach, Coinbase and Circle are reinforcing its position as a foundational asset in the Web3 economy. More chains mean more use cases: faster payments, lower fees, enhanced liquidity, and broader financial inclusion.
Revenue Sharing Model Evolves
Despite the dissolution of Centre, the partnership between Coinbase and Circle remains economically robust. Both companies will continue to earn revenue from interest income generated by USDC reserves—funds backed primarily by cash and short-term U.S. Treasuries.
Under the updated agreement, this revenue will be shared based on the volume of USDC held on each platform. For example, if 60% of circulating USDC is stored or used within Coinbase’s ecosystem (including its exchange, wallet, and DeFi integrations), then Coinbase receives 60% of the interest earnings.
“We will now equally share in interest income generated from the broader distribution and usage of USDC,” Coinbase noted, emphasizing collaboration over competition.
This performance-based model incentivizes both parties to drive adoption, improve user experience, and expand infrastructure—ultimately benefiting the entire USDC ecosystem.
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Why This Matters for the Crypto Industry
The decision to sunset Centre and consolidate governance under Circle signals growing confidence in self-regulated, transparent stablecoin operations. It also highlights how mature players are adapting to regulatory expectations without sacrificing innovation.
Stablecoins—digital tokens pegged to stable assets like the U.S. dollar—play a crucial role in reducing volatility in crypto markets. They serve as bridges between traditional finance and blockchain-based systems, enabling everything from remittances to decentralized lending.
With regulatory clarity, multi-chain scalability, and transparent reserve practices, USDC stands out as a benchmark for compliance-oriented stablecoins. Its evolution mirrors wider industry trends: consolidation among trusted issuers, increased institutional participation, and global interoperability.
Frequently Asked Questions (FAQ)
What is happening to Centre Consortium?
Centre Consortium, the joint venture between Coinbase and Circle that governed USD Coin (USDC), is being shut down. Its functions are being absorbed by Circle, which will now fully manage USDC issuance and governance.
Who owns USDC now?
USDC continues to be issued by Circle Internet Financial. Following the restructuring, Circle has full operational control over the stablecoin, while Coinbase holds an equity stake in Circle.
Will USDC become less decentralized?
While governance is now centralized under Circle, USDC remains a multi-chain, openly accessible token. Its reserves are regularly audited and published, ensuring transparency even without a separate consortium.
How does this affect users of USDC?
Most users won’t notice immediate changes. The token remains pegged to the U.S. dollar, fully backed, and usable across numerous platforms. Future benefits include faster innovation and broader blockchain support.
Is this related to upcoming U.S. crypto regulations?
Yes. The move reflects anticipation of clearer U.S. rules for stablecoins. By consolidating governance under a single regulated entity, Circle positions USDC as compliant with potential future legislation.
Where can I use USDC after these changes?
USDC remains widely accepted across exchanges, DeFi protocols, wallets, and payment networks. Its upcoming deployment on six new blockchains will further expand usability.
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Final Thoughts
The strategic investment by Coinbase in Circle—and the subsequent closure of Centre Consortium—represents more than just corporate restructuring. It's a signal that the crypto industry is entering a phase of responsible growth, where innovation aligns with regulation, transparency, and long-term sustainability.
As USDC expands across 15 blockchains and strengthens its reserve-backed model, it continues to set standards for what a modern digital dollar should look like. For developers, investors, and everyday users, this evolution promises greater access, reliability, and utility in the decentralized financial landscape.
Keywords: USD Coin, stablecoin, Coinbase, Circle, USDC, blockchain, cryptocurrency, multi-chain